How to Teach Kids About Money
- Kids don't realize that money can cause stress. Don't be the one to show them all the stress that money can bring. Let their future spouse do that (kidding).
- Buy them a piggy bank. Or a chicken bank. Or a frog bank. Whatever.
- If you give them an allowance, make sure that they earn it. They don't have to paint the house or anything, but nothing in this world is free. They should know this.
- Make them buy a toy with their own money every once in a while.
- An expensive toy that breaks isn't a sign that you should buy another expensive toy to replace it. (This is a good lesson for you too.)
- If they are old enough to drive, then they are old enough to have a summer job. Don't let their first job be the one after they graduate from college. They will blow all their money. Trust me. I see it everyday.
- Kids need to see someone show restraint. Make sure to tell them that you can't afford everything. This means that you need to show discretion with your own purchases.
- The trick to teaching kids about money is making sure that your habits are rock solid first.
- Don't pay them for good grades. Yeah it’s great for them at the time, but it creates a real "hand-out" problem. They will have their hand out every time that they do something good.