Teaching Your Young Child to Be Money Conscious

moneyIt is best to start early when it comes to teaching your child to be money conscious.

Teaching them about money while they are young will undoubtedly help them make better decisions as they get older. Here is some advice to help you teach your child this valuable lesson:

  • Lead by example. Your child learns from everything you do. It can be confusing to your child if you are teaching them to be money conscious, but you spend money at the drop of a hat. This doesn’t mean you can’t indulge every once in a while, if you have the means, but maybe it would be best to do this when your child is not around.
  • Give your child an allowance for completing designated chores. For young children, the tasks can be as simple as picking up their toys.
  • Limit the frequency of buying something for your child, such as limiting them to one new toy a month. Explain why you can’t buy your child everything they want. This will help your child understand your actions.
  • Set a price limit when buying something for your child and let your child pick out an item in that range. For example, tell them they can pick out a toy, but it needs to be under $15. As your child points out toys in the toy aisle that they like, let them know if it is in the price range you have set.
  • Open a savings account for your child and teach them about the benefits of saving money.

Start teaching your child these good habits today. Your child will be thankful for these valuable lessons someday.

Image via Flickr/Adam Bartlett