Education

5 Ways Kids Can Learn the Value of Money

Teach your kids to be smart with their money while they are young and they will be smart with their money when they grow up.

Apr 14, 2016

April is National Financial Literacy Month, so it is a good time of the year to reflect if parents are doing a good job at passing on important money skills to their children. Many of us may not feel we have all the best answers, so it makes sense to turn to those who are experts.

Perhaps there is no more popular money expert today than best-selling financial guru Dave Ramsey. One of his books is Smart Money Smart Kids: Raising the Next Generation to Win with Money, which he wrote with his daughter Rachel Cruze. Here are five tips that Dave and Rachel recommend that you pass on to your children:

  1. Lesson one is to teach kids the value of work, whether they are paid or not. Adults who learn good work habits as children are much better prepared for adulthood than those kids who did not work as children.
  2. Direct and nurture your children in allowing them to spend money, but don’t control them. Let them make some unwise money decisions that will help them learn how to not spend money later.
  3. Teaching your children all the things that go along with saving, such as goal setting and delayed gratification is one of the most important skills to pass onto children that will benefit them for a lifetime.
  4. It’s easy for children to be self-centered. Parents who train their children to think of others with their money help them become less selfish.
  5. Don’t wait for kids to grow up to first do a budget. Kids with jobs should especially be taught how to budget their money. No spending everything you make. Have a plan.

Kids are like sponges when it comes to learning. They also can develop habits that will continue as adults, whether good or bad. Teach your kids to be smart with their money while they are young and they will be smart with their money when they grow up.

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