Kids Money Management Part II

Kids money management needs parents who are willing to help their children make wise decisions about their money. Guidance and wisdom from God's Word, and practical information will help them to succeed with the money they earn now and in the future.

Teaching your Kids Good Money Habits
In Their Formative Years

The second key to helping your children manage their money is to help them make wise decisions about how and when to spend the 70% of the money they have left from saving, tithing, and investing in the gospel (or giving offerings).

This is an important time that will shape how your child spends their money as an adult. It doesn't really matter how much money a person has, if they don't know how to spend wisely, they will always live to the edge of their money. This goes for people who are wealthy as well as people who have low incomes. When the time comes for your child to spend his or her money, the opportunity is ready to be addressed.

Before your children spend, ask them these important kids money management questions:

Do you want to spend all of your money today or would you like to save it longer?

Are you buying just to buy?

If you do go shopping is what you want going to last or will you have it for awhile?

Is there another item you would prefer?

kids money management bad habits can be prevented.

Reminder

Teach your kids not to buy just because they have money but because they have a real desire to buy.

By asking your children these questions and others you might feel important, you will help them to think first before buying something that may not last or will really make them happy over a period of time. Otherwise they will develop impulsive habits when they shop that are more a waste of money than a good shopping experience. Thinking first before spending causes them to be wise little stewards of their money.

Causing your child to think before going on a shopping trip will delay their gratification, clearing the way for them to become a wise consumer. They will be encouraged to be more responsible when they are ready to go shopping.

Kids Money Management Begins With Money

You will have to decide how your children are to obtain their money. This system will not work if used only a few times a month when he or she gets a little money gift or birthday money.

The is a daily or weekly endeavor that must be consistent. Instead of spending money on your child by buying them impulse items, decide to cut that type of spending off and instead, give your child a good allowance that you can afford by assigning chores to be accomplished. This will keep you from just giving your child money to keep him or her from feeling entitled.

They can still do jobs without pay so that they do not think that they can only share in the daily chores at home if they get paid, yet, they will have other tasks they will get paid for doing. Here are a few tips.

Help your child develop a good work ethic by making it exciting for him or her to do certain chore or jobs to earn money.

Help and encourage your small children to learn how to do tasks and complete them to the best of their ability. This will help them to do accomplish more for a feeling of confidence.

Don't overwork them, but let them work hard enough to appreciate what they buy with their earnings.

Give them enough of an allowance to allow them to buy most of what they want. This way they will be more motivated to spend wisely.

Once you decide what type of jobs your child will do to earn money and how much they will receive, it's time to begin a special savings system that will develop good savings and spending habits in your child or children that gives them the potential to be successful with money for the rest of their lives.

The next lesson will teach you and your child how to make a special bank that will help them save and spend according to the 10/10/10/70 principle and have fun at the same time (ready soon). Go to the Money Savvy 4-Compartment Banks that are sturdy and come in a variety of colors and designs. Your kids will love them!