Teaching Kids About Money In The Family Home
Thursday, 29 July 2010 07:44 | 
Written by Darren Ho |
Everyday, all people in this world all have to experience the facts of life which are paying different bills and putting food on the table for your family. Parents try to do the best they can to provide a higher standard of living for their children then their predecessors. We want the best for our kids and want to instil a great financial mindset in them.
Everyday, all people in this world all have to experience the facts of life which are paying different bills and putting food on the table for your family. Parents try to do the best they can to provide a higher standard of living for their children then their predecessors. We want the best for our kids and want to instil a great financial mindset in them.
One way of teaching children about money is your very own home with the finances you have to juggle. Have monthly meetings with your kids. Show them what these meetings are about.
It all starts with the money that the parents earn first. Explain this to your kids that money doesn't just grow on trees. Tell them that you get paid consistently over a week or month.
Now with this money, it needs to be used to pay for different items. Communicate with your children what the money is used for.
The following is an example of what you can show to your children:
1. Electricity bill = $x
2. Gas bill = $x
3. Water bill = $x
4. Mortgage = $x
5. Petrol for car = $x
6. Groceries = $x
As you can see from the above list, you are laying what each bill/item is going to cost.
At the end of this, you will see how much is being paid to this. Subtract this from the income and this would equal savings.
Explain to your children what these savings will do. For example, it could be use to pay off the mortgage quicker, used to replace a household appliance that is breaking down, or saving for an end of the year family holiday.
If you explain it to them in this way, they will start to understand the value of money and will be more cautious on what they spend their allowance on.
Later on, as your child becomes older, give them a bit of control on how the household finances should be divided. Let them suggest what should be done with the money. Encourage them to think about how the family could save more. For example a simple way to decrease the electricity bill is to turn off the lights in your house when no one is in the room.
If you do this consistently, your children will start reaping the benefits of this continual education later on in their adult lives.
Everyday, all people in this world all have to experience the facts of life which are paying different bills and putting food on the table for your family. Parents try to do the best they can to provide a higher standard of living for their children then their predecessors. We want the best for our kids and want to instil a great financial mindset in them.
One way of teaching children about money is your very own home with the finances you have to juggle. Have monthly meetings with your kids. Show them what these meetings are about.
It all starts with the money that the parents earn first. Explain this to your kids that money doesn't just grow on trees. Tell them that you get paid consistently over a week or month.
Now with this money, it needs to be used to pay for different items. Communicate with your children what the money is used for.
The following is an example of what you can show to your children:
1. Electricity bill = $x
2. Gas bill = $x
3. Water bill = $x
4. Mortgage = $x
5. Petrol for car = $x
6. Groceries = $x
As you can see from the above list, you are laying what each bill/item is going to cost.
At the end of this, you will see how much is being paid to this. Subtract this from the income and this would equal savings.
Explain to your children what these savings will do. For example, it could be use to pay off the mortgage quicker, used to replace a household appliance that is breaking down, or saving for an end of the year family holiday.
If you explain it to them in this way, they will start to understand the value of money and will be more cautious on what they spend their allowance on.
Later on, as your child becomes older, give them a bit of control on how the household finances should be divided. Let them suggest what should be done with the money. Encourage them to think about how the family could save more. For example a simple way to decrease the electricity bill is to turn off the lights in your house when no one is in the room.
If you do this consistently, your children will start reaping the benefits of this continual education later on in their adult lives.
About the Author:
Learn more about teaching children about money. Stop by Teaching-Kids-About-Money.com where you can find out all about financial education for kids and what it can do for you.