Money Management for Kids

Teaching Your Kids Good Money Management

Teaching Kids About Money

Teaching kids how to budget
One of the easiest and fastest ways to teach your kids the basics of budgeting is to set up the ‘three jar’ system. When they get their pocket money it gets divided up into three jars – one is for spending, one is for giving away to charity and one is for saving. Basically, you’re setting them up with a mini version of your budgeting system. They get to decide how much to dedicate to each jar and you need to give them the chance to do some extra jobs to earn some additional ‘savings’ income.
Teaching kids to set goals
A great way to start teaching kids about setting goals is to have them save up for something they want to buy.
let them do the hard work and take responsibility for getting enough cash together to reach their goal. This technique instills a great sense of pride in a kid and also helps to stop some of the nagging that instantly buying them whatever they want can encourage.
Teaching kids to be self-reliant
if your kids ask you for something that’s beyond the budget, explain that buying it is not an option today and that they need to work out how they could go about being able to earn the cash to buy it. Giving them the chance to work out that you can’t always have everything you want straight away is an important step in creating good money management habits, and if you back it up with helping them to figure out how to earn the money and save until they reach their goal, you’ll be giving them strategies that will last a lifetime.
Teaching kids by being a good role model
We learn the vast majority of our money management habits from our parents. Have a think about what your kids are learning from you on a daily basis. Are they seeing you behave impulsively or responsibly? Are they watching you work toward your own goals or seeing you simply put everything on credit?
People often say that their kids are too young to learn about money management, but the truth is that if they can count they’re old enough to start being taught the basics.
Give them the best start in life by teaching them simple lessons the easy way, right from the start.

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