{Guest Post} Teaching Kids About Money and Finances {by Edna Thomson}

When it comes to establishing habits in our children,it often happens to be a real challenge. Especially when money is involved, things become even more complicated due to the fact that children usually have other concept for the finances. This has its simple explanation – kids, unlike adults do not have to think of paying all the bills or distributing the monthly budget in the proper way.

Teaching kids about money and finance can be easy as long as you know the right approaches and possess the patience and the time to devote on this activity. There are methods and ways in which you, as a parent, could explain some money-saving strategies without bothering your kids with unnecessary facts and statistics. It will be useful for them to know how to operate with their savings in an excellent way as well as how to know the importance of being practical when it comes to family budget.

This article will give you some valuable tips how to make your kids realize the importance of the distribution of finances and money.

Draw a Picture With Your Family Budget

This a simple but effective way to demonstrate to your kids where you actually spend your money. You can draw a picture of your home, designating what are the monthly bills that goes for electricity, food and clothes. In this way kids will easily assimilate that money is not only associated with the pocket money, they receive every day. Explain them that when receiving a salary, it is essential to distribute your money, so that you can pay the bills, buy the food for all the family and have another amount of money for clothes and other necessary things.

Buy Your Children a Piggy Bank

If you really want to establish money-saving habits in your children, the first step consists in buying them a piggy bank. Try to explain to them that if they save enough money, they will be able to buy something that they really want. Do not change the amount of the pocket money that you give, just offer them the piggy bank and watch how they will behave. Let the kids determine by themselves the amount of money that they will put in their piggy bank and you will be amazed how organized they can be when they want to save money for their toys and gadgets.

Create Jars for “Saving” and “Spending” Money

Thanks to these jars you can explain the distribution of money in the best possible way. Whenever the kids receive money for their birthday or for any other occasion they can separate them between these two jars. In this way the  child can visualize in an excellent way the amount of money saved, and those that are planned for spending. Explain them that money in the saving jar could be used for buying more expensive items, while the spending jar could be used for more insignificant purchases.

After you have explained your children how to distribute their money in the most practical and suitable way, you can also tell them a few words about cleaning habits. They also need to be established when kids are little because they will easily learn how to provide their cleaning duties in an excellent way.

Now that you are already acquainted with some of the effective ways of explaining your children the importance of money, you can freely discuss with them this issue. Being a good example is one of the most important aspects when money is concerned, so your behaviour as a parent will definitely affect the attitude of the kids towards money and finances.

The article is contributed by Edna Thomson from HouseCleaners Hampstead

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