Children can begin to understand simple principles of logic as early as four years of age. By the age of seven they are capable of complex problem solving and able to consider the feelings and needs of others as well as their own. It is crucial to begin teaching children about money in the early years of their lives because they are competent to learn important lessons on responsibility and how to save for the things that they want.

Birthday money seems to be a large source of income for children at this time and can be an excellent way to instruct them on how to save for desired items. Instead of purchasing those high-priced items for them allow them to accumulate enough money to obtain them on their own. The shopping trip to retrieve the items will be exciting because the child will have saved the money on their own and feel as if they earned the reward.

Christmas may be financially difficult for parents when presented with long lists. Children are not aware in many cases that any limit is placed on these types of gifts. If the child still expects Santa, have them place their most desired items on that list and explain how busy he is. For the list that they give to parents, provide them with a budget. Allow them to select wanted items and stay within the budgeted amount. This is a useful way to teach kids about money. They will develop knowledge of the cost of items and how to choose.

Encourage children to save their pennies in a bank and that they too will accumulate in a short period of time. To further encourage the savings a suggestion of matching whatever they save can be made. This is good for younger children not yet receiving an allowance, but wanting to earn money to purchase items.

An allowance is a good way to teach children that money needs to be earned and it should be started fairly early. They can be assigned particular tasks on a list to be done daily. As long as the tasks are completed they can be paid either daily or weekly for their efforts.

If at all possible, take your children to visit your place of business. Allow them to get the idea that parents actually do not play all day while they are at school. It is important for them to see that life will be a transition into working and that things will not be given to them.

When teaching kids about money, try and make it fun and they will be interested in learning about this topic more. have a lot of great resources. Let’s begin and invest in our children’s lives. Teach Kids About Money Start today to enhance your child’s financial future.
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