Kids and Money: Helping with the Family Budget

Kids and money? Teaching your kids about financial matters like the family budget will not only help you, but will help your child be responsible as well.

Contrary to popular belief, it is never too early to get kids and money together. Child experts say that there are two types of parents, those who think that children should be aware of family expenses and more and then there are those who think that they should.

Kids and Money Tip 1: No Better Time to Learn Than Now

Some parents say that kids should no be bothered with things like money matters, especially since they think that the child should not be concerned with anything except playing. Other's think that young children won't understand anyways, so why bother? A poll conducted in the U.S., however, shows that kids actually worry more than their parents give them credit for, especially when it comes to the financial stance of the family.

Being young, children can learn and quickly absorb information, so what better time to teach them about important matters than now? It's a parent's responsibility to educate them about the things that will greatly affect the child, financials included, and this can be done at any age, all it takes is patience and age- appropriate activities.

Kids and Money Tip 2: Teaching Kids about Money and Budgeting

The thing about teaching your kids about money and budgeting is that it can be done anywhere and at anytime, you don't need to set-up a classroom nor does it have to be complicated process. One thing that you can do is show them the actual currency, bills and coins. With young children, they learn best with visuals as abstract teachings may be too much for them to grasp. Another tip is to get them involved in financial transactions, even if it is as simple as paying for purchases in the supermarket.

You can be creative and use pizza to explain about budgeting. Tell your child that the whole pizza represents your family’s budget for a month. Ask him to help you make a list of all the things that your family spends on, and start slicing the pizza according to the list. For older children, you can opt to give them and allowance and tell them that you are giving them leeway to spend it on what they want, but to make it last of a certain period of time (usually a week) so that they learn about budgeting in the sense that they have to be discerning with their purchases otherwise they may run out of money. Aside from giving your child a sense of independence and responsibility, an allowance provides the opportunity to talk about and practice saving for something, making wise choices, and understanding the effects of buying things on impulse.

Never underestimate kids and money, when children learn about financial matters at a young age, not only is it beneficial to you because you might raise a wise spender, but it will also be beneficial to your kids as they learn to be responsible as young as they are.

 

What are your "kids and money" tips? Let us know and share them in our Comment box below.

Like us on Facebook and follow us on Google+ to stay up-to-date on the latest from theAsianparent.com Philippines!