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Teaching Your Kids About Money Management

By Meaghan Montrose

We live in a materialistic world today. More and more ads are geared towards children. These commercials try to convince kids that they NEED to have a particular toy, piece of clothing, video game, etc… As a parent you have probably had to endure the nagging, begging, and pleading of your child when they just HAVE to get something or else they will suffer from being uncool or behind the times.

Buying your children gifts or letting them spend money on luxuries isn’t all bad, but first they need to learn the value of a dollar. This is a lesson that fewer and fewer parents seem to be providing to their children. The truth of the matter is, in these times we should be giving our children even more lessons on money management to deal with the poor economy, tight job market, and the hundreds of ways to get into debt young (credit cards, zero financing and free interest offers, student loans).

In my blog searches I found a great article on the MoneyNing.com blog. The article describes a way to teach the value of money by helping your child Visualize Money Management with the Four Jars Approach. The basic idea is to have your child set up four jars (or more or less if appropriate) to learn the idea of budgeting and allocating money they earn. Check out the post for all the details.

Topics: Money and Business Advice, Parenting | 1 Comment »

One Response to “Teaching Your Kids About Money Management”

  1. Don Krone Says:

    I agree wholeheartedly with trying to teach children the value of a dollar. Too often children think that a bank consists of a place where a parent can go and simply withdraw an endless supply of money. Certainly, the four jars method would be effective. But what happened to the old fashioned notion of assigning your child chores and having them earn some money? The value of a dollar is reinforced if a child must put forth some effort to receive it.
    Another approach not often taken is to teach your child to be less materialistic. I know that in today’s consumer driven society that is nearly impossible, but one way to do so would is to sponsor a needy child through a non profit organization in your child’s name. that way the child you sponsor and your own child can develop a relationship and your child will tend to be more appreciative of what they have and where they live. this will also reinforce the value of a dollar in their mind.