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Ways to Teach Your Children How to Manage Their Money

Teach Your Kids about Smart Money Management

Saving money and spending it wisely can take a lot of effort and discipline. A lot of people are having a hard time managing their finances. This is shown in a 2019 survey, which revealed that nearly 70% of Americans have less than $1,000 in their savings accounts.

While money management is integral in building a secure life moving forward, it’s surprising that schools never see the need to teach this subject. This could be one of the major reasons why millions of people are burdened with financial difficulties.

To prevent your kids from experiencing this problem when they grow up, it’s best to educate them as early as possible about the importance of managing money wisely.

To ensure that your young ones will have healthy financial habits in the future, you better start them young by following these tips:

 

For Preschoolers and Kindergartners

1. Use 2 clear jars separately.

Instead of the traditional piggy bank, take it to the next level by using two clear jars — one for savings and the other for spending. Whenever your child receives money, divide it equally between the jars. Money in the savings jar should only be for expensive items while the spending jar is for small purchases, such as stickers or candies.

2. Teach them that stuff costs money.

Although a simple lecture helps, it’s always better to teach your child through actual demonstration. Let them see how one needs cash to buy something. Ask them to grab a couple of dollars from their “spending” jar, take them to their favorite candy store, and have them pay for their sweets by handing the money to the cashier.

3. Lead by example.

Young kids love to mimic their parents. If you want your child to become a money saver, be one yourself. Show your child the value of money by having your own jar where you put your funds in every day. Let them know why it’s important to save for the future.

 

For Elementary and Middle Schoolers

1. Set savings goals.

It’s pointless for kids to save money without them knowing why. A savings goal is an excellent way to motivate your child as it gives them a clear idea of what they want to save for.

As a parent, your role is to help them break down these goals into attainable tasks. For instance, if your child plans to buy a skateboard that costs $100 and you’re giving them an allowance of $10 every week, help them calculate how long will it take for them to reach that goal using their savings rate as a basis.

2. Give commissions.

Adults earn money by working hard. This is a good lesson to discuss with your child while they’re still young. Every time they finish a household chore, such as cleaning their room or taking out the trash, reward them with commissions.

3. Avoid impulse buying.

Impulse buying is one of the reasons why some bank accounts look pretty miserable. Train your child to think first before making a purchase whenever something catches their attention.

Encourage them to wait at least one day before buying anything that costs over $15. That way, they’ll be able to decide with a level head.

 

Teens

1. Open a bank account.

If you have a teenager, consider setting up a simple bank account for them. This will help them grow their savings account as they grow older.

2. Tell them to start saving for college.

It would seem like it was just yesterday when you were sending your child off to preschool, and now, they’re about to enter a new chapter in their life: college. Before they officially do, however, make sure to have them start saving as early as now. If they’re planning to apply for a part-time job (or if they already have one), take a portion of their salary and transfer it to their college savings account.

As for student loans, be blunt and explain why that shouldn’t be an option to fund their education. Provide all of the alternatives you can think of, such as applying for scholarships, working part-time while studying, or going to community college.

3. Introduce the concept of compound interest.

Do your teen a huge favor by getting them to start investing now. Tell them everything there is to know about compound interest and how it will benefit them in the long run. Remember, the earlier they get into the habit of investing, the brighter the future looks for them.

 

Teach Your Kids About the Virtue of Generosity, Too

While teaching your children about proper money management, you might want to teach them about generosity as well. Show them how a little charitable gesture can make a huge difference in the lives of the less fortunate. One way to demonstrate this is by donating your old and unwanted vehicle to us at Kids Car Donations. Tell your little ones that such a donation will help seriously ill children in your community in getting the treatment they badly need.

We’ll auction off your donated vehicle and use the proceeds to support the vital health care programs of the children’s nonprofit organizations that we have partnered with. These IRS-approved 501(c)(3) nonprofits use the funding to provide their young beneficiaries with free comprehensive and quality medical assistance, including treatment, emotional support, relief of pain and trauma, and other essential health care services such as free social service and educational resources.

We believe that good deeds should come with wonderful rewards, which is why we’ll promptly mail to you the 100% tax-deductible sales receipt of your vehicle days after we sell it. This receipt will entitle you to claim the maximum tax deduction in the upcoming tax season. You will also benefit from the free towing service that we will provide you. We offer this to our donors in all parts of the U.S.

On top of the material rewards that will come your way, you’ll also experience the priceless joy and satisfaction of doing an act of charity that will help sick children regain their health and have a bright future ahead of them.

We take almost all types of vehicles regardless of their age, mileage, and condition. You may head over to this page to find out the different types of vehicles we welcome in our program.

Do you have any concerns or questions for us? Go ahead and call us at our toll-free hotline 866-634-8395 or send us a message here. For more information regarding our donation process, you may browse through our FAQs page.

 

Help Save Young Lives Today!

Kid and Dogs | Kids Car Donations

We’re sure your kids are already proud of you for various reasons. Keep it coming by teaching them the virtue of charity. Help struggling boys and girls in your community by donating your unneeded vehicle to Kids Car Donations. Call 866-634-8395 or make your donation here now!