Parents can easily start to implement natural education about money in their daily lives. In the upcoming book Piggy Banks to Paychecks, author Angie Mohr, CA, CMA shares tips with parents about teaching their kids about money. Here she shares one of her tips with readers:
Visit Angie Mohr's website for Piggy Banks to Paychecks for even more information.Piggy Banks to Paychecks, Angie Mohr (Fitzhenry & Whiteside, 2012)
RAISING MONEY SMART KIDS TIP #2
Start Early and Make it FunThe one question I get the most often from parents is "How soon should we start teaching our kids about budgeting and money?" The answer to the question isn't cut and dried. Money lessons start with simply exposing your kids to the financial realities of life.
"Why can't I have that chocolate bar?""Because it's not in our budget this week."
"Why did that lady give you money?""Because she just bought some books from us."
Exposure to finances is the first step for kids to learn what money is and how to handle it. There's no need for formal lessons or lectures. Kids pick up their financial knowledge through everyday living.
When kids are around five, they can begin to understand more complex monetary situations, such as commerce and saving. Take your kids to the local discount store and let them decide on minor purchases, such as whether to buy the name brand laundry detergent or the generic one. Explain the reasons why one might be better than the other (more loads of laundry for the cost, quality, etc.).
Let young children count out change and get used to monetary equivalents, such as ten dimes make a dollar. Buy them a piggy bank (or make one from a jar) and let them start accumulating coins. When they're older, they can start working for their money, doing chores around the house. Keep money a daily part of their lives, just as it is a daily part of your life.