Teaching Your Kids About Money

6:21 PM, Jan 17, 2014   |    comments
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GREENSBORO, NC -- Your parents said it. Now you say it (but I'm not going to tell you you're turning into your parents!) The saying, "Money doesn't grow on trees", is one we have all heard, but it doesn't teach us anything about how to save or spend money, does it?

Judy Midero from Piedmont Parent Magazine has a few ideas on how to teach your kids about money.

Start playing games with money Money is fun and when you incorporate games, it makes the concepts of money stick in a child's mind. For the younger kids start with a "Money Scavenger Hunt", you may even hide some money yourself to make the game more exciting. Have your child think of all the areas that money can hide. Once your children have found every last cent, have them sit down on the floor and separate all the pennies, nickels, dimes and quarters.

For older kids, they can do some spring-cleaning while they're at it and roll the money before going to the bank.

Create positive habits early The habits you create on a daily basis will determine your success in life. If a child takes a dollar and spends a dollar, then the habit of living paycheck to paycheck has begun. But if a child learns to divide up their money into giving, investing, saving and spending, then a child is learning the habit of creating wealth.

This simple concept will ensure your child has a secure financial future. For every dollar they receive make sure they divide, 10% giving, 10% investing, 10% saving and 70%  is for spending wisely and saving for items they do not have enough to buy just yet.

Allowance and spending lessons made easy Allowance is key to teaching kids the value of money. It works best in teaching financial lessons when money is earned versus just given for no reason.

When children earn money/allowance they are able to understand the value of it because they have worked for it. When a child then takes their earned money and buys the items they want with it, the sweat equity has much more meaning! Along with earning they are naturally learning how to manage their money, which over time will become a very valuable habit later in life.

The power of a penny If you want your kids to never pass up a penny on the sidewalk again, ask them one question: what would you rather have? A million dollars right now or a penny doubled every day for 30 days? Before you read further, ask this question to yourself - which would you take? Write down the answer. Most kids are shocked when they see the following: (for space reasons calculated by weeks.) Day 1 (1¢) Day 7 (64¢) Day 14 ($81.92) Day 21 ($10,485.76) Day 28 ($1,342,177.28) Day 30. ($5,368,709.12)

Answer your kids' money questions Take time to ask your kids "What is Your Biggest question when it comes to Money?" What would you like to know more about? As a parent its ok if you don't know! Be comfortable with saying, "I don't' know all the answers but lets do some research! Education is first and foremost your secret weapon with anything in life. The more education you have in any subject the more educated decisions you can make.

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