How to Raise Money Savvy Children

You send your children to school five days a week, but chances are they aren’t learning one of the most basic skills they will need to succeed in life — how to manage money. So how can you make sure that when your children embark on adulthood they know how to balance a budget, manage credit, and set financial priorities?

Allowances:
Pay out an allowance much like a business pays its employees. Make sure your children earn the money and be consistent with what they need to do to get the money and when they get the money. Having your children use their allowance to pay for a couple of their necessities like clothes can help them learn how to tell the difference between a need and a want.

Savings Accounts:
Set up a savings account with your child and teach them the value of investing.

Use Cash:
If you are always using a credit card it will be hard for your children to make associations between what things cost and what they have to spend.

Be Open About Finances:
Don’t gloss over your own money troubles. It is healthy for children to realize that money isn’t something that will always be there no matter what. Budgeting together as a family will teach them important lessons on how to budget when they grow up.