1. Let Them Earn Their Own Money
Letting children earn their own money gives them a greater appreciation for its value. The boys and I are going on a massive 50 day camping road trip this summer and I don’t want them to think it comes free. Each weekend they are going to have a little lemonade stand in town that they work to help earn money for the trip. This way, they realize that it takes a lot of hard work to save up for something you really want. That $1 cheap toy won’t seem like such a simple thing to ask for when they learn how hard it can be to earn that dollar on their own.
2. Open a Savings Account for Them
This is one piece of advice I definitely plan to follow. Starting a savings account for your children starts them on the road to financial responsibility early on. They learn how to save a portion of what they earn or receive for later, a skill that will come in quite handy in their adult lives.
3. Lead by Example
Perhaps the best way to teach your children about good finances and budgeting is to lead by example yourself. The facts are that many women and moms pass the financial buck to the men of the house and take less of a roll in being responsible for their finances. This article from TIME about women taking control of finances discusses why it is so important for women to have a hand in managing their family’s finances now. I plan to set a prime example for my boys when it comes to money and I used tools like the Genworth life insurance budget calculator to make sure we stay on track and can afford the coverage we would need if something were to happen to me.
How are you teaching your children about money?