15 Ways to Teach Kids About Finances

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Keeping good records of money saved, invested, or spent is another important skill young people must learn. To make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year. Establish this system for each child. Encourage children to place receipts from
all purchases in the envelopes and keep notes on what they do with their money.

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  • kierah

    One method my friends have used with their young children is to teach the difference between “needs” and “wants.” Before these kids even understand money, they understand that Mommy and Daddy will handle the needs, but when we just want something it has to be earned. Even a 5 year old can understand this and it is something that will be used in budgeting throughout financial life.

  • Tia

    If my kids lost or damaged something that we bought them, we replace it but at cost to the kids-they forgo their allowance for whatever the cost of the item was. For instance, my daughter lost a pair of running shoes that I bought specifically for her to run on the cross country team. They cost $130; she receives $10 per week in allowance. So, I repurchased the shoes but it took her 13 weeks before she could receive her allowance again. Also, when they have gotten gifts in the form of money, I have withheld a portion to cover things like lost glasses. Money is important and you can never start too early with that lesson and the lesson of being responsible and respectful of other people’s money.

  • http://www.facebook.com/bob.pierson2 Bob Pierson

    Great article. Grew up knowing how to use money, responsible with money and if u borrowed, it would cost… blah blah blah. However, I really know very little. These reoccurring national economic challenges are complicated and need understanding far greater than being a consumer. Question is: what, when and how do you teach about our resource management system ? And what morels and ethics do u instill?

  • Tha Real Hamia

    Re: #7: But where do you get this 6% interest tho?? o_O I haven’t seen such since the 90′s

  • Jenifer

    Why do we have to click all the dame pages? Just put the info out and stop worrying about hits to your page. ugh!