(MOV Parent - Graphic Illustration - MetroCreativeConnection)

“A penny saved is a penny earned” — “money can’t buy happiness” are two quotes that all of us have heard and are familiar with but the true classic saying is that ” money does not grow on trees ” which is used many time by parents to point out the value of money.

Therefore, it is very important that children learn not only the value of money but also earning money, budgeting and savings etc. which takes an adult supervision.

1. Teach them how to earn money.

It is easy to spend someone else’s money when it is given to them freely without any effort or responsibility of earning on their part. Only when the child is working will they fully appreciate and understand that it is important to evaluate and use good judgment when purchasing various items or things.

Be sure to point out to them if they want to purchase say a pair of shoes that cost $100 that you point out to them how many hours a person would have to work at making minimum wage. This will help them evaluate and calculate plus appreciate money plus provides a good time for a parent to remind them that “money does not grow on trees”.

Having your child find a part time job will greatly help them establish responsibilities and also a better understanding the value of money.

2. Save Money

It is also very important to teach them to hold out a small portion of money they make before they start spending and not waiting to save what ever is left.

A good practice is to open a savings account at a bank where they can deposit a portion of their earnings on a regular basis and watch their money even grow a little.

3. Spending Money

It is a excellent practice to be sure your child does not over spend and have saved up enough money to fully pay for the item they wish to purchase and avoid using a credit card and avoid the practice of “buy now – pay later.”

4. Borrowing Money

If at all possible “Avoid Borrowing Money.”

5. Managing Money

Teach your child to budget and discipline your finances or the finances will end up disciplines you.

Have your child set up three jars — one for money to save. — one for money to spend and a third one for a tithe or charity. By these three methods they will develop good solid financial habits.

There are many financial games such as Monopoly that can also make it fun and educational and also make it interesting at the same time.

Till next month