Teach Kids About Money Early, Experts Say

Content by Alex S.

Effective money management is an essential life skill, one that experts agree parents should start teaching early. According to a September 13, 2012, US News and World Report article, when kids are old enough to start asking for things, they are old enough to start learning about money management.

 

In October of 2012, Forbes Magazine noted that the early years are an ideal time to establish saving and spending habits that could last a lifetime. Teaching children about money is easier than most people think.

See Budgeting In Motion

Allowing kids to sit in on family budgeting can be an educational experience. Many families don't talk about finances in front of children on a regular basis, as a normal part of life planning. Parent led discussions can help children determine spending priorities, such as shelter, food, and transportation expenses. Teaching kids how to save money by planning for expenses in advance is also important. Planning daily menus by the grocery store sales specials or seeking out coupon codes for AutoAnything when the time comes for routine auto maintenance tasks demonstrate how planning ahead can cost less.

Relate Time And Money

Break down costs by relating time and money. This is a valuable life lesson that any child old enough for basic counting and time telling skills can understand. When children ask for things, help them to decide if those things are worth the time it takes to earn them. Even young children can understand the simple message of that much money equals this much time away from mommy, as money must be earned through work. This is an excellent way to help children decide what things are or are not worth to them, gently steering their priorities towards the family's value system.

Shopping Skills In Action

Demonstrate shopping skills like price comparisons in stores and searching the Internet for bargains. Talk about unit pricing while shopping and show kids how to do the math. Give children an active role in assessing which purchases are the best bargain. Help them weigh out the various factors involved in shopping online, such as shipping costs and the cost of fuel and time to travel to the store to buy something, and to decide the most economical means of making a specific purchase. After a while, these sorts of skills will become second nature.

Offer Hands On Experience

Kids need to have a bit of money in hand if they are going to learn how to manage it. However, having money isn't just about spending it. It is also about learning to save it. Many experts suggest encouraging children to save a percentage of their money to set the saving habit. Using money wisely, by not spending more than necessary to achieve a goal, is something children can also do. In the same way adults can take advantage of sales or plan to save using discount opportunities like AutoAnything coupons, children can be bargain shoppers for their wants and needs, when taught shopping skills and money management techniques.

Teach Kids About Money Early, Experts Say