Be consistent in the ways you allocate and manage allowance money. Let your kids know you're not paying them to perform, do chores, achieve good grades in school or go to bed on time - but to help prepare them for a world where the way money is used can be very important in achieving happiness and success.
We've all had to learn how to find the best prices for things and regulate our impulses to buy shiny new toys. Teach your kids to compare prices, features, and quality before deciding what to buy. As children mature and their income rises, make them responsible for some of their own expenses - school clothes, car insurance, and gas - whatever makes sense for them - it's a quick way for young adults to get a feel for managing their own resources.
Start out with a small goal. Save a regular amount every week for a fixed length of time - a few weeks is short enough to keep the kids interested. Be sure you save enough to pay for something they'll want and enjoy and perhaps offer to match what they save so that you're a part of the effort too.
Encourage kids to learn that financial resources can be a powerful tool to help solve problems. It can help people and can improve our community. It is a great way to encourage their growth and development as good citizens and productive, responsible members of our community.
Hit the Road and try out your budgeting skills with NCUA's money game below!
Our Momcent's Mom, Krista, has three kids ranging from 7 to 13. She shares her experiences being a mom (the good and the bad) along with how she teaches her kids about money. You can find all of her blog posts below!
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