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Step 1
There are a couple of things that parents need to know, one is that it is never to young to start and seconded of all, show the kids how you made the money but also how you pay out that money to live. This will establish a connection between the actual money and the cost of products.
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Step 2
Start an allowance. Make sure that they earn it or lesson one is no good. This will help them build a great work and saving etiquette for the future.
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Step 3
Next, let you child spend a portion of the allowance and save the other. It can start out with a piggy bank, but the older children need a saving account at a bank. They will need to learn that process to become adults anyway.
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Step 4
Another great lesson is to purchase a prepaid card. This can be used to teach them about credit. Place $20 dollars on the card, let them shop, and make them make payment from their allowance to you.
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Step 5
This will help in a smooth transition to a debit card when they become teens and later as an adult.
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Step 6
Money can slip through your fingers so easily these days, so teach your child to keep receipts and track where they are spending the money. This will also help show them where their spending habits, good or bad are.
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Step 7
Teach your child that investing in the long run is better. Even the smallest child can be taught this by simply, setting some money away in an envelope and placing a date on it. If the child does not spend this money he/she will earn some extra money.
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Step 8
The last thing is teach your child that money saving can be fun. Show them that if they save money they can buy bigger price items. Show them that it take saving money to keep them when bad times come. Don’t hide this from your child. Let them know that the money has rewards and penalties. Money needs to be earned and saved for those rainy days.
