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Children can learn logical principles from the early age of only four. By the young age of seven, they are very capable of solving completely complex problems and have the ability to relate to the feelings of others. Teaching children about money can benefit them by teaching them more than just how to purchase things that they want; it can teach them responsibility.
Birthday money can often be a very large type of income for many children and an excellent opportunity to instruct them on saving. Instead of purchasing those items they want between holidays or at any given time, allow them to save money to buy them on their own. It will give them a sense of pride and excitement that they have accomplished saving the money and purchasing the item for themselves.
Christmas can be an expensive time of year for all parents. Children often provide long lists without the understanding that money is involved. If children still associate Santa with Christmas then have them prepare his list with the most desired items and instructions on how busy he is. Allow them a budgeted amount of money when preparing the parents list. This is an effective way to teach kids about money. This allows them to learn to make choices and to realize the cost of items.
For small kids, saving pennies can even be important. Allow them to save theirs, and match whatever they save for encouragement. Young children will be very excited by this and it provides them a way to purchase wanted toys.
The allowance is still a good way for older children to work for their money. Provide them with a list of tasks to complete daily. It is important that the tasks be completed and upon completion they can be paid either weekly or daily based on their age.
It can be a great idea to allow children to see where parents work as well. They often believe that they are working hard at school and parents play all day. This can teach them that everyone in life makes the transition from school to work and life is not play.
Teaching kids about money should be interesting for kids. Try and make it fun so they will enjoy learning about money.
About the Author:
Derrick Janson is an expert in Teaching Kids About Money. He has taught about teaching children about money topics such as allowances, budgeting, saving money and making money for kids.