Money Saving Tips For Kids

Early Finances - Tips For Teaching Your Kids Money Skills

Advice Seeker: Dear April,

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

April Masini's advice:

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.