Kids and Money - Guide to Raising a Money Smart Kid

Kids and money is one of the important topics close to the hearts for most parents. Teaching children good money habits and proper money management is a well worth effort. It is a life-long benefit for young kids to learn about money.

Parents should teach children about money regardless of income and when kids are young. Most people form their opinion about money based on childhood experiences, values and beliefs of their families. Thus, it is vital that children are exposed to discussion and communication about money at home.

Here are some guidelines as parents take the lead on teaching money to children:
- Be consistent in approach. Each parent may have different beliefs. I was horrified to discover my husband spent away all my daughter's "red packet" money she received during Chinese New Year. From this experience, we have managed to establish a consistent approach on what values and beliefs we want on teaching money to our kids.
- Act as an advisor who direct rather than dictate the child.
- Always encourage and praise kids instead of criticize.
- Allow kids to make mistakes and learn from it.
- Set limits on what they can and cannot do based on appropriate age. Let them face the consequences or outcome for violating limits.
- Do not pay children for doing routine household chores. In my belief, doing household chores is part of the responsibility of each family member. Children should not be taught to expect compensation for fulfilling their responsibility.
- Include all family members in money matter discussion, decision making and activities. Again, this has to be age appropriate.

Money Activities

Money is a subject kids will not learn in school. They may learn how to count money but not the concept of saving, spending, investing and borrowing. This is when discussions, observation through planned activities can a child learn about money. We can either play some money games or use some of these money activities as lesson plans to teach our kids.

Kids Allowance

What better ways to let kids learn about money management than giving them an allowance. Not only is this hands-on case for children but it also provides opportunity for parents to teach them about budget.

Kids making Money Ideas and Guide

It will come a time when we want our children to be earning their own money. Young kids will be equally keen to find ways to make their own money. There are many opportunities available for kids to try out with appropriate coaching from their parents. This is really a good hands-on experience for kids to learn about the various method to earn money.

There must be parents' involvement when come to kids and money. The value and beliefs about money are formed in family and children learn it from parents. Again, this is a life-long skill which can benefit our kids in their future.

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