As a parent, grandparent, or guardian, it’s your responsibility to raise a child who is intelligent, happy, healthy, successful, and kind. Teaching them life skills can be a foreign concept, but then again, so are the many facets of parenting.

One important skill that children should begin learning at an early age is money management and financial responsibility. It’s never too late (or too early) to begin establishing healthy financial habits that they can take with them into adulthood.

Allow Them To Earn An Allowance

Children are incapable of understanding the power of money if they never have their own. Moreover, they can begin to learn healthy money habits once they comprehend that nothing in life is free. This can be done by giving children an allowance earned by completing responsibilities.

Toddlers And Preschoolers

Small children aren’t too privy to the concepts of lawn mowing and leaf raking when it comes to chores. They’re not going to keep up with a $10 bill either. Instead, open the door for conversations about monetary values.

Reward simple tasks like putting toys away and making their bed with coins to put in their piggy bank. Many small children appreciate being big helpers, and this is a perfect opportunity to teach them about saving money in a piggy bank.

Grade Schoolers And Middle Schoolers

Grade school and middle school children can begin learning simple spending and budgeting. This can be based on the dollars and coins they earn doing heavier chores, like dishwashing and sweeping. They can learn how to read price tags and buy small toys for themselves as a reward for their hard work.

When you go shopping as a family, explain to them how much money you have and how much you’re spending as you go along. This helps them learn about budgeting and helps them with simple math problems as well.

High Schoolers

Teenagers have more to learn and understand at this age. They want more out of life and are willing to work hard to earn money and spend money on the big things they want. At a certain age, they can begin working part-time jobs. This allows them to begin building a work experience and learning all about taxes and accounting.

During their high school years, begin adding more responsibilities to their everyday chores. Find a creative way to teach them about credit early, so they can be aware of the dangers of having bad credit in the future. At this point, you can also begin helping them plan a monthly budget for college.

Be Open About Finances And Budgeting Decisions

Don’t be closed off about money. The more aware children are of money management, the more quickly they’ll catch on to the concepts of earning, spending, saving, and investing money correctly.

Don’t be afraid to tell them “No”, but if it’s because of money, explain that to them. Children learn by your example. Encouraging good spending habits and teaching them how to accomplish them will set them up for success in the future.