I often get questions regarding Teaching Kids about Money, I know that a lot of us are raising younger kids and while we are working to manage our budgets and save on everything we buy it’s also important to me to make sure I’m teaching the same values to my kids! I thought I would share a few of the things we are doing with our kids that is helping them understand and grasp the importance of money even at a young age.
We started teaching my oldest about Money when he was only 2. One of the first things we did was to teach our kids to start to budget their money, we do this with all the money they get weather it’s from doing different Responsibilities, From Birthday Gifts, or From Friends and Family Members. Regardless of how they earn or receive the money we divide it into 3 basic categories:
- Give – We want to teach our kids that’s it important to give first, we give out of what we have been blessed with, not out of what is “Left Over” So we always put 10% into the Give Bank.
- Save – The next bank we use is Save. We typically put about 20% in Saving and this money is saved not for an item they want but for long term goals, and goes into their Savings Account.
- Spend – The remaining money goes into the Spend Bank. I’ll talk more about this later in the week but we don’t buy much of anything (Especially Toys) for our kids out of “Our Money” I think it’s important to teach kids at a young age to make smart decisions about what they are buying and I find that my Son especially is more careful with what he’s buying when he feels like he’s spending his own money.
We use the Dave Ramsey Jr. Banks for our kids because they love the Junior Series Books and Audio CDs, we listen to these in the Car and also the books are some of their favorites.
You can also make your own Banks with Empty Coffee Cans, Construction Paper and Markers! This is a great way to get Kids Involved in the process!
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