Money Management for Kids is essential because when you start teaching kids about money, one of the most important lessons is how to have a healthy attitude about money.
Teaching kids how to be wise with the use of money will not only avoid a lot of conduct troubles, it will be also a skill that makes easier the rest of their lives.
Why Teaching Money Management for Kids is so Crucial
Teaching kids about money management is one of the most important life skills that you should be teaching to your children, because you will be moving away from your children the six major dangers, according to Paul W. Lermitte, that faces every person who does not develops an appropriate financial culture.
Dangers of not Developing Good Habits about Money
* Financial dependency.
* Adoption of destructive values.
* Improper handling of debt.
* Lack of confidence.
* Inversion of values scale.
* Family conflicts for money disputes.
In his book Allowances: Dollars and Sense, Lermitte also exposes universal principles that parents should to empathize in order to educate their kids in money management.
Universal Principles in Money Management for Kids
* Talk about money and financial matters with your children.
* Start teaching about money from an early age.
* Give your kids control over their money.
* Let your children make mistakes in managing their money.
* Set limits on the amount of money that can handle your children.
* Help your kids to set a planned program of savings and expenses.
In addition to all the above, there are many other simple actions you can begin to provide your children valuable tools regarding money management that will help for the rest of their lives.
Tips for Teaching Money Management for Kids
* Introduce the concept of money as soon as possible.
* Teach by example (not only in money matters).
* Support your child to open a savings account.
* Give your children an allowance.
* Make financial education fun.
* Let your kids to earn money.
* Teach your children make a budget.
* Talk to your kids about the concepts of credit, interest and taxes.
* Teach them to invest.
* Teach kids to set financial goals.
By teaching money management skills to your kids, they will be smart consumers, financially responsible and successful adults.
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