Kids Money

Kids money can be gone before it is even earned.

Because kids do not have regular expenses they normally will find something they want and then save or beg for it.

They need to be taught how to spend money wisely and limit what they spend. This can be as simple as having a certain percent of kids money go to savings and/or investment.

Saving teaches kids that they don’t need to spend every penny they bring in. As they save teach them the value of investing. Look for a high interest savings account. Online accounts such as ING or PayPal offer higher rates than a local bank. YOU will be amazed how excited kids get at the thought that theri money can work for them.

You can also have them donate a certain amount to a church or other charitable organization.

There are important part of teaching kids about money. Children need to know that money doesn't just go toward their wants. But should be saved for the future.

The second step in teaches kids to limit expenses is; as they get older make them responsible for their own expenses.

Kids money in high school can go toward things like registration fees, clothes, year book purchase, team sport uniforms/fees, as well as entertainment. This shouldn’t be thought of or put across as mom and dad don’t have the money to pay for these things for the kids. Kids should have learned by this time that you can budget in whatever is necessary.

They will learn to save for future expenses that they are currently unaware of.

Think of this as a positive step toward independence not an undue burden. Once your kids are in High School it’s only a few short years before they are on their own (hopefully). Money management skills are important for every day life.

Once kids go to college they will have to juggle school, work, and friends without the safety net of living at home. It is better that your children learn how to spend their money wisely and limit what they spend while they are home. Mistakes in money management aren’t so bad when you are still at mom and dad’s and have food to eat. But when kids money is spent unwisely without being at home the mistakes are bigger.

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"A man in debt is so far a slave,"
Ralph Waldo Emerson.

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