I always remember what my parents have taught me or even how my husband handle he's money (I think he's better than me, because i have this typical woman thing--when i see clothes, bag or shoes that i like...i can't sleep) my husband is in control with he's money, this is what i want to develop with our kids. Motivation and time is all you need to introduce this idea's to your kids.
I have here a few idea's to each our kiddo about money.
Situation: We have an agreement with our 3 yrs. old son that he can earn money by helping mommy or daddy by doing some task and whatever amount that he saves from he's money tin we will double that in the end of the year.
We used a jar to save he's money and sealed it, this way he can see he's money growing and that encourage him more.
Important: you have to explain to your kids that their are also task that don't need to get paid and this is what we called "normal/daily task" such as getting change, make their bed etc.. but other than that they can earn.
Lesson we get:
- We teach our kids the value of money and that "money don't grow out of the tree" - Work hard and get rewarded.
- Encourage our kids to save money for things they want but in fun way.
- We are teaching our kids about interest in simple way, he's money earns an interest by just sitting in the jar.
Although this is very simple there are other things we can do specially to the older kids:
- Talk to them about money, bills and show them your weekly expenses, show them how much money you make - this tech the kids where the money go and "why can't we just give them one when they want one" this give them a lasting lesson about the value of money.
- Be Supportive and consistent with your rules and agreements - once it's set, show them that you mean it, you stick to it and that you support them.
- Encourage them to open a bank account - Once they earned money, saved money...Now is the time you encourage them to open their own bank account (They will get excited about this).
- Explain about interest - This is your chance to explain more further about making their money grow, Best example "I will borrow your money for a month, i will pay you an interest. You money will grow from $10 to $11" explain why.
- Record Keeping - encourage them to keep a book that intended only for their financial records, record their income and expenditures, show them (Make it fun) and show them how to keep on track of their money.
Their's so much we can do to teach our children about money, me an my husband are having fun. There are times that my son don't do any task and we tell him like "Son i don't see you earning money today" and he start going to the kitchen and drying the plates...it's fun, but most of all you are molding your children and helping them developing their money management skills.