How to Teach Kids Money Management Skills
Open a Children's Account, Paper Round, Household Chores, Save Money
Mar 5, 2009
It is important to teach kids money management skills from an early age, as this will help them avoid debt problems later in life. Teach kids the value of money by introducing them to a variety of jobs for children, including paper rounds and household chores. Open a children's account and encourage them to regularly save money they've worked hard to earn. These will help children to effectively manage their money.
Open a Children's Account and Save Money
According to the 2008 Halifax Pocket Money Survey, the average amount of pocket money given is currently £6.13. Teaching kids money management centres around encouraging a child to save money by paying this into a tax-free children's account. Paying just £1 a week into a children's account is a good habit for any child. The amount saved can be increased after selecting from a range of jobs for children.
Save Money from a Paper Round
According to a BBC Paper Round Survey in 2007, taking on a paper round typically raises between £5 and £15 per week. Jobs for children may not pay a huge amount, but they teach kids money management skills and prepare them for the rigours of an adult working life. Encourage children to save money earned from their paper round and pay this into a tax-free children's account.
Supplement Children's Savings through Household Chores
There are a number of safe household chores or jobs for children that a child can be introduced to in order to give them a work ethic for later in adult life. Examples include: hoovering, washing dishes, gardening work and cleaning the car. Many parents choose to ask their children to perform household chores in order to earn their pocket money.
Save Money on Household Bills by Teaching Budgeting
Involve a child with budgeting for household bills. Work out a grocery budget and tell the child how much is available each day. Children will quickly be able to ascertain how much food costs. They will notice that branded foods are more expensive than generic foods and price reductions can be found. Kids money management skills will quickly develop as a result of saving money on grocery bills.
Kids money management skills need to be developed early on in life in order to avoid personal debt problems further down the line. Jobs for children teach them that they need to work hard to be able to pay for things they would otherwise take for granted. A children's account teaches kids to save for things they want.
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