Is it important to teach my kids about handling money and budgeting?
Friday, February 12, 2010 16:49
Posted in category Budgeting
I don’t want them growing up later and somehow be in debt from credit cards when they can get one.
How should I teach them in a way it is simple and easy to understand?
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pandabear says:
February 12th, 2010 at 4:49 pm
I pay my kids on a monthly basis. With their money, they have their bills to pay, save some, donate some, and they can spend the rest of whatever they want. So many kids leave their parents home not knowing how to manage a budget and do end up in debt. My daughter spent to much money about 6 months ago and asked to "borrow" some from me for her lunch. I gave her the money for lunch that she had to pay back along with interest. She thought that was unfair but when I explained that’s the how banks, credit cards, etc work, she made sure she paid me back the next month and now she keeps in mind what her monthly bills are before she blows her money.
Lisa says:
February 12th, 2010 at 4:49 pm
Very.
Fo Shizzle says:
February 12th, 2010 at 4:49 pm
extremely.
Maplestory fan says:
February 12th, 2010 at 4:49 pm
depends on their age teach them when they are about 10
redalbanian_0136 says:
February 12th, 2010 at 4:49 pm
I suggest you give them $5 each week and see what they do, then you can show them why saving can help.
My name's MUD says:
February 12th, 2010 at 4:49 pm
Well moneysavingexpert.com has a great guide for teenagers to use to budget, it explains a lot of things from credit cards to bank loans etc..
Adam says:
February 12th, 2010 at 4:49 pm
The answer to the first question is Yes. Schools do not teach money and budgeting at all (which partly explains the sad state of our country’s finances)
First off, you have to explain what debt is. Most kids don’t even know what debt means.
A FAT MAN YOU MET AT THE MALL says:
February 12th, 2010 at 4:49 pm
yes totally
limit their pocket money just enough for eating and once a week dont let them understand let them get used to it
Shasta/Francisco says:
February 12th, 2010 at 4:49 pm
Explain what credit debt does to people in life, then show examples
MOMMY OF TWO says:
February 12th, 2010 at 4:49 pm
yes it is very important. teach them to save there money up to be able to afford what they want. we are already starting, we give our 2 1/2 year old money to put in his piggy bank and he already know when he has enough money in there that he can get a new toy or something.
lovex says:
February 12th, 2010 at 4:49 pm
pocket money and ensuring they leanr to save for example instead of buying them whatever they want, say yu will pay a 3/4 of it if they pay the other half, they will then learn that they have to be careful with money\!!!!
heartachoke says:
February 12th, 2010 at 4:49 pm
Of course it’s important. Just start with the basics and go from there. Teach them the most during their teen years when they will need it the most, before they head out into the "real world".
Emily J says:
February 12th, 2010 at 4:49 pm
Yes, you definitely should teach them.
A great way to start is an allowance. First let them know they have to earn the money, then talk to them about what they should be spending it on(lunch, clothes, movies etc.) allowances are great because they will not only teach the value of money but they will understand how to spend it more wisely!
DONT give in to your child when they ask for more money, their allowance is like their pay check!
Ed M says:
February 12th, 2010 at 4:49 pm
depending on how old they are,if theyre too young they cant bear the strain and stress of decision making because the wouldnt be dependent enough to make their own choices or decisions.how to know when theyre ready? well youll notice when they start spending earned money obsesively.
alysha says:
February 12th, 2010 at 4:49 pm
Show them how you handle and budget your money. If they grow up seeing you handle the money the way you do, thats the way they’ll do it too. Because they’ll be so used to seeing it done that way, they’ll automatically learn and pick up what you do with your money.
suzanna_banana says:
February 12th, 2010 at 4:49 pm
In my opinion, a method that works best is to give them a weekly or monthly allowance and not even a cent above the established sum, even if they spend it too quickly.
This way, they will learn to manage their money, so that is enough for the entire period.
Or if they need extra-money, doing additional chores in the house would be a great for making them feel they earned their money.
mylittlecricket says:
February 12th, 2010 at 4:49 pm
The best way to do it is by setting the example. Depending on their age, they may or may not understand. Show them by doing what you want them to do.
d3v10u5b0y says:
February 12th, 2010 at 4:49 pm
Only if they’re not smart enough to know that questions like this have an obvious answer. Perhaps someone else should instruct them on this subject.
epkinvegas says:
February 12th, 2010 at 4:49 pm
It is extremely important. The how to teach depends on their age.
Here are some websites that might help….
http://www.giveme20.com/?gclid=CJ-K3uvo-JoCFRAMDQodjR6wdA
http://www.mint.com/blog/finance-core/family-budget-teaching-children-money-skills/
http://www.mint.com/blog/finance-core/family-budget-teaching-children-money-skills/
http://www.forbes.com/2005/03/29/cx_sr_0329kidsmoney.html
tabi says:
February 12th, 2010 at 4:49 pm
its especially important, considering how our economy is.
it’s really easy to teach them, give them an allowance and a piggy bank or even a savings account. this will teach them to save up, and whatnot. be sure not to give in and buy them anything unnecessary when they run out of money to teach them the importance of saving their money.
mkay says:
February 12th, 2010 at 4:49 pm
When they get birthday money and such say "you should save that money timmy and then you can get something you really like.. like a house when your 24 years old and you want to move out"
When i was little I would save up my money like crazy and somehow my the time i was fourteen my bank account had 800 dollars in it. My parents never tought me to save my money either.
teacher them to be thoughtful of others is more important though.. of course
TSM says:
February 12th, 2010 at 4:49 pm
My mom started with me young by giving me a small allowance and explaining that if I wanted to buy something I would have to save my allowance for it. Because I tended to fixate on one object when I was younger, it worked. She also opened a checking account for me and she would deposit my allowance for me so I could save for whatever it was I wanted.
As I got older and was able to work part time, it was explained to me that if I wanted a car and a cell phone, she would get the insurance and the phone for me but I had to save to by the car and pay the monthly cell phone bill. It worked. I wanted both.
Now I am 24, married, with baby. I worked a full time job so I could go to college and moved out on my own when I was 21. Because she will only help me if it’s desperatly needed, I learned how to budget on a monthly basis and not over spend.
Jessi says:
February 12th, 2010 at 4:49 pm
You should probably explain to them how money, cards and checks work. Then you might wanna start out by an allowance. Let them start saving week by week. Later, when they find a toy they like ask them " do you really need this?" I think maybe you need this such as clothes and needable things in life." You might also wanna show them once they spend their money that it isnt easy saving again. That they will have to becareful of what their buying and if its useless or needed. You can also show them the importance of parents getting jobs and education to get that job such as a firefighter or doctor and that when their older they’ll be dealing with much bigger things then buying toys or like hot dogs lol.
peepcarlpants68 says:
February 12th, 2010 at 4:49 pm
http://funnyjunk.com/funny_pictures/17815/Parenting+Guide/
~:.:Bizkit:.:~ says:
February 12th, 2010 at 4:49 pm
well
my parents speak about it every day
but i learned financial business off a online game
its fun and educarional to me
its all about saving up
investing buying selling and whatnot
and i literally becMe a billionaire on the game
and the people
who invented the game have been making
millions of actual cash every month fir the past 8 years
lol
an yea
but its important so they dont become snobs when they hrow up
money runs the world
those who have the money run the world
:]
and those who are wise with money can do anything because of money
Mom of 2 says:
February 12th, 2010 at 4:49 pm
YES YES YES. My mother hid everything about money from me. Even when she got a second job she told me she was "going to the gym" I have to admit that it has taken me a long time to learn how to manage money. I am still not great at it. It is something that does not come natural to me. My mother says it’s common sense but if that were true why would so many people struggle.
My husband and I are teaching out kids about money (age appropriate) I want to make sure my kids understand what the world is really like before I send them out into it.
Mr. Grey Smiley Face says:
February 12th, 2010 at 4:49 pm
The best way in my opinion would be to make them work when they become teenagers. It doesn’t have to be a real part time job or anything, just grueling physical labor around the house or for a family friend that they don’t enjoy for a few hours with minimum wage.
Afterwards, show them all your bills, mortgage, all your expenses, and how much you or your spouse make. Hopefully they will learn the value of a dollar and appreciate what you as parents do for them.
bynxyta says:
February 12th, 2010 at 4:49 pm
Try getting three piggie banks. Write on each one Spending, Saving, and College. Have them deposit money into each one when money is gifted or earned. Teach them the importance of handling their money.
Ruth says:
February 12th, 2010 at 4:49 pm
Yes, yes, and, ummm….YES
Debt Specialist In The UK Required | says:
February 12th, 2010 at 7:02 pm
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