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How To Teach Your Children About Spending Money

When it comes to handling money, adults are the ones always responsible because they always know what to do with it. However, not everyone knows how to spend wisely, that is why a lot of people are struggling even if they have stable jobs and all. It is always ideal to teach children at a young age when it comes to money. Try by simply taking them when you go grocery shopping, and let them know that you have to pay for what you need to buy, and not everything comes in the same price range. It doesn’t have to be too complicated, just let them watch what you’re doing and in they have a question, answer them in the simplest way possible. That is just one of the best ways, here are a couple more when it comes to teaching children about spending money wisely.

It doesn’t have to be too complicated. Just let them watch what you’re doing and in they have a question, answer them in the simplest way possible. That is just one of the best ways, here are a couple more when it comes to teaching children about spending money wisely.

“My children were taught at an early age how money works and that it comes from hard work. They have been on a commission, not an allowance, since they were little, they managed to learn that if they worked hard around the house, they got paid. If they didn’t work, then they didn’t get paid.” Dave Ramsey

WORKING FOR IT WILL BE MORE WORTH IT

Once children are old enough to go to school, they would then be able to use their understanding feature when it comes to simple money matters. That is why it is the perfect time for you to let them know about how money works.

Let them know about how adults have to work a specific job in order to earn money because money doesn’t just come from the bank or would magically appear in your wallet and pocket, it must be earned. So in order for them to be able to earn some money, they could do extra household chores since they’re still young and at school.

MONEY CAN’T BUY EVERYTHING

Now that your children know how money works, they might think that money could make them get everything they want. This is the perfect time for you to explain that money cannot buy everything in this world. Try to explain it as simple as you can by starting with your family, money cannot buy a mom or dad, siblings, not even friends. Money cannot buy your love and other feelings, and most of all, money cannot buy the memories people make. These are just priceless and irreplaceable because money can only buy material things, as well, as bills and taxes of course, but it would be too complicated for them to understand so stick to the simplest form.

THE DIFFERENCE OF NEEDS AND WANTS

This next one might be a little too complicated for a child, but as long as you apply it to yourself and for the rest of the household, they would learn it as time goes by. It is very important for them to be able to learn about this at such a young age because not even every adult knows and apply this into their everyday lives. Being able to identify what you need and what you want is indeed necessary because you cannot simply buy everything you want, especially if you are not as rich as Bill Gates.

However, you must get what you need. The perfect way to do this is let your children join you when you are listing down everything that you need to get at the grocery store, make them understand that those things on the list are essential, and you are not there to buy toys or treats. Once you get there you children might ask you that they want this or that, but make them understand that you didn’t go there to buy what you want, instead you are getting what is needed. A child wouldn’t understand if you simply say ‘No!’ every single time they ask for something stay calm and talk to them seriously about it.

THE MORE YOU SAVE, THE MORE YOU CAN BUY

This has got to be one of the best things you could teach your children, the power of saving money. If you are giving your children allowances and some extra money doing household chores, let them know that it is best to save all the money they’re getting so they could buy whatever toy they want. It would totally motivate them to save up because the more they save, the more they could buy.

“It’s never too early to teach your children about the tool of money, teach them how to work for it and they learn and self-respect. Teach them how to save it and they learn security and self-worth, teach them how to be generous with it and they learn love.”Judith Jomison

BE GRATEFUL

Finally, with all this money talk with your children, it is also very important for you to make them understand that not every child in this world is lucky enough to be able to spend or save money. That is why it is important for you to show them how to be grateful and at the same time how they could help out in the simplest way they can, such as giving away some toys or clothes to children who need it more than they do. No matter how small it is, a simple act of kindest can change someone’s life.
Money plays such a huge part in people’s lives, that is why it is absolutely necessary for adults to guide the little ones the magic of spending wisely. It is never too early, you can even learn a thing or two about it since you have to be a good example to them when it comes to money.

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