Kids cannot earn money themselves because of their age, and this fact may cause them not appreciative about the value of money they get. Kids only realized that they need money to buy ice creams, toys, and else. When they beg long enough, they will get what they want.
It is an important issue for parents to teach their kids about money, where it comes from, how to get it, how they should use it and else.
The best time to teach your kids about money depends on their maturity of understanding things and their mathematical level. Do they understand denomination, numbers, and basic mathematical ability (such as addition, substraction, multiplication)?
You can learn whether your kids are ready for allowance responsibility. You will notice when they can resist the temptation of what they want, whether they can delay their gratification, and whether they understand that sometimes they cannot buy whatever they want.
Above all, your kids will actually learn about money themselves by following your examples. Kids learn fast from what they see and not from what you say. That is why it is important for them if you could lead a good example about how to deal with money.
Showing posts with label pocket money. Show all posts
Showing posts with label pocket money. Show all posts
Wednesday, April 9, 2008
When to Teach Your Kids about Money
Thursday, April 3, 2008
What to Teach Your Kids about Money
When your kids understand the difference between each money denomination, they are supposed to be able to determine how much they should pay for ice cream, candy, snacks, etc.
What you should teach them is the responsibility in regards to their personal allowance. An allowance will be a useful teaching tool to pass each money lesson to your kids.
There are several things you can teach by giving allowance to your kids:
The resistance of temptation.
It is important for kids to understand that they have to make choices on what they want as they cannot have it all. They have to train themselves on what to buy, and when.
The importance of savings.
Kids supposed to have their own savings to buy things beyond their allowance. They should wait until they have enough money to buy it. Kids can discipline themselves to save at least 10% of their allowance for their unpredictable needs.
The usage of bookkeeping.
You may teach your kids to take a note of their allowance, savings and expenditures so that they will learn to see how they spend their money. This habit will bring the kids advantages in the future as they will hold more money than an allowance.
The ability of logical thinking.
By giving them the chance to manage their own allowance and freedom to buy what they want with their allowance, you develop the ability of logical thinking on your kids. They will learn how much the normal price of an ice cream, which one is better whether buying books or buying a sticker. By giving them chances to analyse their expenditures, you actually develop their logical thinking.
The knowledge that money has to be earned.
You can offer your kids for some extra allowance by doing housework within their age, such as watering the garden, washing dishes, help you wash the car and else. They will appreciate the money that they earn themselves.
There are still a lot of things to teach your kids about money. It is important to teach them to be responsible as soon as they can understand.
Responsibility is like a habit, it has to be trained and disciplined
What you should teach them is the responsibility in regards to their personal allowance. An allowance will be a useful teaching tool to pass each money lesson to your kids.
There are several things you can teach by giving allowance to your kids:
The resistance of temptation.
It is important for kids to understand that they have to make choices on what they want as they cannot have it all. They have to train themselves on what to buy, and when.
The importance of savings.
Kids supposed to have their own savings to buy things beyond their allowance. They should wait until they have enough money to buy it. Kids can discipline themselves to save at least 10% of their allowance for their unpredictable needs.
The usage of bookkeeping.
You may teach your kids to take a note of their allowance, savings and expenditures so that they will learn to see how they spend their money. This habit will bring the kids advantages in the future as they will hold more money than an allowance.
The ability of logical thinking.
By giving them the chance to manage their own allowance and freedom to buy what they want with their allowance, you develop the ability of logical thinking on your kids. They will learn how much the normal price of an ice cream, which one is better whether buying books or buying a sticker. By giving them chances to analyse their expenditures, you actually develop their logical thinking.
The knowledge that money has to be earned.
You can offer your kids for some extra allowance by doing housework within their age, such as watering the garden, washing dishes, help you wash the car and else. They will appreciate the money that they earn themselves.
There are still a lot of things to teach your kids about money. It is important to teach them to be responsible as soon as they can understand.
Responsibility is like a habit, it has to be trained and disciplined
Saturday, March 22, 2008
Pocket Money 101 ......for Your Kid
As working moms maybe you are so busy already with your personal business and make your kids lack of attentions. To some people it may end buying their kids attention by giving more money allowance.
Maybe then you doubt about when, how much and how often your kid will need allowance. But remember that it’s more to keep an eye on how he is using the money.
So here are some issues you ‘d better know about your kid’s pocket money:
Do you need to give allowance to your little kid?
When your kid is still a little boy and stay around you, actually he does not need allowance. What you need to do is only telling him that you will try to fulfill what his needs are, he just has to ask. When he is older and often left alone at home, you might need to give him some allowance to buy extra food.
What happens if your kid play with the ‘rich’ kids ?
It will bring you headache when your kid play around with the ‘rich’ kids on the neighborhood whose parents might earn a lot of money. If this happens, you should explain to him that although he does not have much allowance comparing to his friends, he still can have fun and play with them, also teach them that money has nothing to do with the value of a person.
When is the best time to teach your kid about savings account?
For a kid under 5 years old, it is best for him to use the “Piggy Bank’ at home. When he is 8-12 years old, you might need to open a bank savings account under his own name. At this age, you can start to teach him about the interests he will earn. This lesson might give him the idea to cut his expenditures and put the money into his account.
What else should you teach your kid about his savings?
Well, you can tell him that on the money he saves, he has the right to use it to buy something he needs, maybe he wants to buy a personal gift. This lesson will teach him the freedom to manage (use) his own money.
As your kid grows older, you can add his allowance, until he can manage to fulfill his own needs. What you need to achieve here is to train him to have a balance between what he has and his expenditures, between his needs and impulsive shopping.
A kid can be ridiculously mad at his parents when you refuse to buy what he wants. On the other hand, you might buy expensive clothes for your spouse as a present. In this case, you can tell him that what you buy is an exceptional, and next time there will be another family member who will be granted the special items for a special occasion.
As good parents, you often need to give your kid a punishment when it is needed. It is advisable for you not to cut his allowance as a punishment. The impact of your punishment may create a new problem for your kid. Your kid may have a plan to buy a present for his birthday friend, and he will feel ashamed as he has to broke his promise, he will feel worry and maybe afraid to be rejected by his friends. It is better for you to think of another punishment.
How much should you give your kid for allowance?
It depends on what he needs. The allowance should not be too little or too much. When you have an extra income or salary increased, you should not be obligated to give him more than it should be. He should understand that his allowance is a part of flexibility you give as parents.
What should you do when your kid ask you for more allowance?
You can say yes if he has a logical reason of why you should give him extra. You need to tell him that the special case should not become a habit. Instead of asking you for more, he can make a choice next time he needs something.
How about giving your kid extra money for doing housework?
Actually, be a part of housework is a must for the family members, However, you should be careful for this issue. Your kid may refuse you next time you ask him a favor when there is no money involved. It is better for you to give him a chance to earn money only once in a while, do not make it as a habit.
The final question every parent might ask is…. When can you stop giving him allowance?
Well, in this case, you should wait until he is an adult and can earn money for him self. When this time comes, you can stop giving him allowance, and change into giving him support to save and manage what he earns wisely
Maybe then you doubt about when, how much and how often your kid will need allowance. But remember that it’s more to keep an eye on how he is using the money.
So here are some issues you ‘d better know about your kid’s pocket money:
Do you need to give allowance to your little kid?
When your kid is still a little boy and stay around you, actually he does not need allowance. What you need to do is only telling him that you will try to fulfill what his needs are, he just has to ask. When he is older and often left alone at home, you might need to give him some allowance to buy extra food.
What happens if your kid play with the ‘rich’ kids ?
It will bring you headache when your kid play around with the ‘rich’ kids on the neighborhood whose parents might earn a lot of money. If this happens, you should explain to him that although he does not have much allowance comparing to his friends, he still can have fun and play with them, also teach them that money has nothing to do with the value of a person.
When is the best time to teach your kid about savings account?
For a kid under 5 years old, it is best for him to use the “Piggy Bank’ at home. When he is 8-12 years old, you might need to open a bank savings account under his own name. At this age, you can start to teach him about the interests he will earn. This lesson might give him the idea to cut his expenditures and put the money into his account.
What else should you teach your kid about his savings?
Well, you can tell him that on the money he saves, he has the right to use it to buy something he needs, maybe he wants to buy a personal gift. This lesson will teach him the freedom to manage (use) his own money.
As your kid grows older, you can add his allowance, until he can manage to fulfill his own needs. What you need to achieve here is to train him to have a balance between what he has and his expenditures, between his needs and impulsive shopping.
A kid can be ridiculously mad at his parents when you refuse to buy what he wants. On the other hand, you might buy expensive clothes for your spouse as a present. In this case, you can tell him that what you buy is an exceptional, and next time there will be another family member who will be granted the special items for a special occasion.
As good parents, you often need to give your kid a punishment when it is needed. It is advisable for you not to cut his allowance as a punishment. The impact of your punishment may create a new problem for your kid. Your kid may have a plan to buy a present for his birthday friend, and he will feel ashamed as he has to broke his promise, he will feel worry and maybe afraid to be rejected by his friends. It is better for you to think of another punishment.
How much should you give your kid for allowance?
It depends on what he needs. The allowance should not be too little or too much. When you have an extra income or salary increased, you should not be obligated to give him more than it should be. He should understand that his allowance is a part of flexibility you give as parents.
What should you do when your kid ask you for more allowance?
You can say yes if he has a logical reason of why you should give him extra. You need to tell him that the special case should not become a habit. Instead of asking you for more, he can make a choice next time he needs something.
How about giving your kid extra money for doing housework?
Actually, be a part of housework is a must for the family members, However, you should be careful for this issue. Your kid may refuse you next time you ask him a favor when there is no money involved. It is better for you to give him a chance to earn money only once in a while, do not make it as a habit.
The final question every parent might ask is…. When can you stop giving him allowance?
Well, in this case, you should wait until he is an adult and can earn money for him self. When this time comes, you can stop giving him allowance, and change into giving him support to save and manage what he earns wisely
Sunday, December 9, 2007
Teaching Your Kids about Money
I believe as parents you want to give all the best things in the world to your children. That is why you work so hard during weekdays, even doing overtime on weekends.
You want them to have a lot of toys, attending good schools, having higher education. It is not enough if you cannot give them holidays, presents and satisfactory pocket money.
What should be underlined is, do not you ever spoil your kids. Spoiling them now will only bring suffering to them in the future.
Teach your kids that money has to be earned and it is not just coming like Santa Claus putting Christmas presents for them. They cannot always get what they want, not because you do not love them.
Nowadays, a lot of parents are busy with their careers and businesses until there are not much time left for the kids. This fact make them feel guilty and they give too much pocket money, so the children can have fun with themselves.
I want you to see it as a problem in the future as:
You want them to have a lot of toys, attending good schools, having higher education. It is not enough if you cannot give them holidays, presents and satisfactory pocket money.
What should be underlined is, do not you ever spoil your kids. Spoiling them now will only bring suffering to them in the future.
Teach your kids that money has to be earned and it is not just coming like Santa Claus putting Christmas presents for them. They cannot always get what they want, not because you do not love them.
Nowadays, a lot of parents are busy with their careers and businesses until there are not much time left for the kids. This fact make them feel guilty and they give too much pocket money, so the children can have fun with themselves.
I want you to see it as a problem in the future as:
- You cannot always give them all the things they want all the time. When giving (spoiling) becomes a habit, it will be hard to teach your children about controlling their desires.
- You are maybe rich now, but can you guarantee for the rest of their life that they will always live in wealth? It will not be easy to change lifestyle extremely at once, and if you do not want to hurt your children, better you teach them a standard lifestyle that can make them survive during hard times.
- Your kids someday will have a family of their own. If you teach them wrong, the bad habits might be passed to them later.
It is important to teach your children how to survive (financially) when they are young.
Here for those reasons, I would like to give you some tips on what to teach kids about money:
- You can occasionally take them to your office and let them stay to see while you are working. Later you explain to them why you have to work. What is expected here not only their appreciation to their parents, but also their understanding about money matter.
Give them enough pocket money (enough value as needed by the average kids at their age).
- Teach them to make a budget, giving them the understandings they need to have their own savings to be useful in an emergency.
- Give them pocket money on daily basis as a starting point. After they manage it well, you can change into weekly basis and then to monthly basis. Let them learn how to stick to their budget. It is also important to train them to control their temptations to shop around when they have “some” money at once in their pocket.
- Give them a piggy bank for the first step. Later on when they have some deposits of their own, take them to your bank and open an account for them under their own name. Let them know that by saving money in the bank, they will get some interests. (you can teach them about administration fees and taxes later on)
- Offer your kids to help you with some housework to receive some extra pocket money. It also can bring self confidence to them that they can do something in the family.
- Do not give extra pocket money out of their schedule. When your kids are out of money and ask you to give them again, you should ask them about their journal, where did all the money go. After knowing what happened you can decide whether you are going to give them extra. You have to tell them when they make mistakes they have to be responsible. Maybe it is an idea that they have to use their savings instead of asking some extra pocket money.
- Do not teach them to owe you by offering them earlier payment of the following week pocket money. You should not teach them such a habit, but teach them how to live with what they have. They should be responsible for their mistakes and learn how to control their expenditures.
I am sure there are still other ideas you can figure out about teaching your kids the value of money.
It is very important to teach them some knowledge about money and let them learn to manage it.
Remember, action speaks louder than words. Try to be a good role model for your kids
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