Money Matters, Parenting

Money Management for Kids

Getting an allowance as a kid is one of my fondest memories. It was always in exchange for the completion of chores or tasks designated by my parents and ever changing over the years. The best part was that I knew all I had to do was get the tasks done and I would receive money — money that I used to buy pizza, baseball cards, and to go to the movies with friends. I thought that this was an amazing trade off. I would do dishes, dust the living room, take out the garbage, and keep my room tidy all for $20 a week, which at the time seemed like a rather generous amount of money. Though I didn’t start out at $20, I certainly reached there by my pre-teens. Although I may have complained at the time, it was certainly much more than my close friends were making. I remember waiting around for hours for my best friends to complete their chores on Saturdays, which included scrubbing down the bathroom, and vacuuming their entire 3 story home, all for a mere $7. I obviously had it good.

Teaching kids about money can be a complicated and tedious task that may not be really understood until they get their first job or have to start paying bills. An article on money management for kids from Today’s Parent suggests that children who are shown how to be responsible about money early on will be much more likely to stay in good financial shape down the road. The article goes on to offer 10 tips on how to teach your child about the way money works. The best part is that they offer tips for various ages including 4-6yrs., 7-9yrs., and 10-12yrs.

Check out the full article here.