Saturday, November 13, 2010

Save Some, Give Some, Spend Some

It's never too early to begin teaching your child how to manage money. In fact, the sooner you begin this important life lesson, the better your child will be able to manage money throughout life.

I have learned three important aspects of managing money involve saving money for the future, giving money to charity, and spending money on wants and needs. It's funny but children at an early age can learn the value of money and simple money skills. And as children mature, they can take on varying levels of responsibility with money, as simple as learning to budget and earn more. There are a number of ways to teach your child to manage his or her money. Here are some ideas to get you started.

Save some.
Even the youngest children love to gather and save pennies. Take my four year old he loves to save money. A friend of mine gacve him a little bank that counts the money for him and he loves for the numbers to go up. He will ad a penny and say "Look Mama I have more" So teach your child to value money at the an early age by getting a piggy bank or money jar and letting your child fill it up with change out of your pocket, or pennies earned doing little tasks. Be sure to take only a certain percentage of those pennies so you can teach your child about the other aspects of money management.

You can also open a savings account for an older child. Each time your child is paid or receives their allowance, take a trip to the bank and deposit a set percentage or amount. Be sure to have the bank print out the balance routinely so your youngster can watch the balance grow.

Give some.
If you attend church, you have a very good opportunity to show your child the concept of giving. Give your child his or her allowance or earnings before entering, then as you put your money in the collection plate, help your child figure out the percentage of his or her offering. Even my little Guy enjoys this and he's only four. Donating to charity of any kind is important to teach your child. You may want to start a donation jar for your child. Each time your child receives their allowance or wages, be sure to help them take a percentage and drop it into the donation jar. Then, when it's filled, help them pick out a charity and make the donation.

Spend some.
Probably the most fun part of your child's money management will naturally be the spending part. None of us are saints, so we all need our little rewards for a job well done. Once the saving and giving is completed, your child now has a little cash to spend on what they want or need. A younger child will, of course, want to buy some candy or a toy. An older child may want to take a trip to the mall for some new clothes or music. Depending on the child's age, some of the spending money may be for essentials as well as fun items. Striking a balance between the two will take time, but your child will figure it out – with your help.
Starting a system of money management early in a child's life will help them develop a sense of control. Money is something we all need to learn to handle, and the earlier we start, the better. These are skills that will last your child a lifetime. You may have a struggle on your hands at first, especially the “save” and “give” portion of the lesson. But, it is a struggle well worth the effort to ensure a lifetime of money management skills.
As a parent, every aspect of your child's development is your concern. Ensuring they develop strong financial skills is mandatory for children to grow into strong, financially secure adults. I wish that I would of had this taught to me at an early age but yet I learned the hard way. But yet a lesson well learned.

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