Teaching Kids about Money

Back to School: Teaching Kids the ABC’s of Money Management

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Are you ready for another school year? It’s here whether you are or not. With kids back in school, take the opportunity to throw basic money management lessons into the daily learning mix. Here are a few useful resources to help you teach your children life lessons they will use well beyond graduation.   A is for Arithmetic Teach your kids to do math. A great way to teach personal finance to a child is to reward them with a small allowance for completing chores around the house. Then, instead of giving in to their requests for new toys, clothes or even a candy bar you can let them know they can purchase it with the money they earned. They will have to add up their income to see if they have enough to purchase their desired item. Looking for more ideas on how to teach your children about money management? Check out these financial resources for families.   B is for Budgeting Budgeting is more than adding and subtracting expenses. It’s also about learning to value money, weighing the pros and cons of a purchase, and understanding the difference between a need and a want. This might be an important lesson for the child who thinks they can’t live without that pair of designer jeans. Here’s a great article on how to teach your kids about budgeting the next time you go back-to-school shopping.   C is for Credit If your kids are already acing calculus, it might be a great time to teach them about credit and how it will impact their lives once they graduate. Here’s one of our favorite infographics showing a range of instances when credit is important throughout life. It’s never too early for your children to have a healthy and informed understanding of money, finances and credit.   This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions. Published by permission from ConsumerInfo.com, Inc.  © 2013 ConsumerInfo.com, Inc.  All rights reserved.