Rule 1 Teach them that money doesn’t grow on trees.It must be earned.
One family posts an allowance chart on the refrigerator door. As members of the family, the kids have certain chores they must take responsibility for, such as keeping their rooms clean, without any financial reward.
Rule 2 Teach them how to save.
e. when kids are old enough to earn allowance, they are old enough to learn about saving money.
A. The quick cash jar. This money can be spent any way the kids want to(with any exceptions you may wish to impose,such as cap guns,soda etc.).
B.The medium-Term saving Jar. This money is set aside for luxury items the kids want, such as their own CD player, a snowboard or video game.
C.College saving Jar. Even if coins and dollar bills don’t add up to much(as even very young children know), making even the smallest contribution to this jar helps to drive home the critical lesson that long-term goals are worth thinking about-and saving for.
Rule 3 Teach them the value of earning money. The last thing responsible parents want is to raise selfish children.
Rule 4. Teach the importance of charity. A major part of learning the value of money involves understanding what it means to have none-or not enough of it.
Rule 5. Teach the essentials of taxes. Kids are no doubt going to hear their hard-working parents complain a lot about how much they have to work just to satisfy Uncle Sam.
Rule 6.Teach about the consequences of waste. It’s easy to implore kids to turn the lights off, save the leftovers, close the windows when the air conditioner is on. Explain that every hour a light is left on for no reason, it cost X dollars.
Rule 7.When they’re ready let them do it themselves. Usually around the age of 12 or 13, kids are mature enough to take the big step of managing a basic budget. You can give them a monthly income allowing them to deposit money into their own checking account, and then budget their expenditures for essentials such as school clothes, entertainment and incidentals.
Rule 8.Teach them about investing and borrowing money. When they’re old enough, give your children a real stake in the stock market or real estate by opening an account in their name,or set up a LLC and hold property with you child as stock holder.When a company that your child has an investment in is written up in the newspaper or on TV,ask your child how current events may impact that company stock.