Money Saving Tips For Kids

Early Finances - Tips For Teaching Your Kids Money Skills

By
Relationship Advice Expert April Masini

My 7-year-old just got a lot of birthday money from relatives and he wants to go out and spend it all on toys. I don't think he realizes the value of money and how much different things cost. Whether than just taking him to the toy store and letting him blow all of his money, I want him to understand more about money and how to save it, etc. Do you have any advice for how I can help teach him money skills?

Sincerely,

He's in the Money

Dear He's in the Money,

When it comes to money, two principles are basic: planning and reality. Many people -- kids and adults don't plan and their impulsiveness can lead them to become broke or in debt. Teaching kids to plan is a great way to teach them about money. Many people, including kids and adults, also dream when it comes to money instead of staying grounded in reality. If your child has finals to study for, chores, and two school team sports, getting a job is probably not a realistic way to earn money to pay for gifts. Knowing boundaries is a great lesson to teach children, and it's application to money is crucial. Many kids think they can afford to buy something that they can't.

Here are some tips to teach your child these skills:

* Take your child shopping with you, and discuss prices of various items while you're shopping. Expand the shopping trip from just shopping to education about shopping.

* Help your child make a list of what they want to receive and what they want to give. Consider saying thank you to teachers and service employees in their lives (the mailman, the garbage man, etc.) with a homemade card or gift. This may expand your child's way of thinking. Consider doing some charity or giving some clothes or books or toys that your child has outgrown to a local charity. Make it an annual event to incorporate charity into your child's life.

* Help your child make some money so that they can buy gifts on their own. If your child is not old enough to babysit, shovel snow or work in a store, give your child some jobs around the house that are not their normal chores, and offer them pay for the job. For instance, you might offer your child a job of cleaning out the garage or polishing the silver in exchange for a set pay rate. You can also help your child make and sell cards or gifts that other people can use or give out, in order to help the child develop an entrepreneurial spirit.

April Masini -- nicknamed "the new millennium's Dear Abby" by the media, is author of the best-selling books Date Out Of Your League and Think & Date Like A Man, the two (just released) step-by-step dating and relationship manuals, Ideas for a Fun Date and Romantic Date Ideas, and the critically acclaimed dating and relationship online magazine www.AskApril.com.

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