One of the major areas that kids need to be ready to handle by the time they are adults is money management. At various ages, children can understand more and more about personal finances. Here are some ideas to help your children prepare for handling their money wisely.
1. Pay commission not allowance.
Assign age-appropriate chores. Pay if the chore is done, no money if it is not.
This helps teach that money comes from work.
2. Require a certain percentage to be given and to be saved.
For example, five chores per week for $5. Save fifty cents, give fifty cents, or save $1, give $1.
3. Have the offering be from their own money. This makes them a giver not just a courier.
4. Have a spend day every so often to use money that has been saved. This rewards sacrifice.
5. Involve the children in portions of the household budget so they learn how that works.
Give control of one category of the household budget, ie. clothing, or restaurant (not grocery).
This will soon convey that some stores will provide only one garment, and some restaurants can be visited more often for the same dollar amount.
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