Sometimes we all need a little guidance in talking with our kids. Here are a few ways you can start teaching your kids about the value of money:
Encourage Saving - Teach the concept of saving as early as possible. Every time your child gets money from allowance, birthdays or odd jobs, encourage them to put some in their Alabama Telco Kids Savings School account. Go one step further by offering them a match on your end for every time they save.
Teach Living Within Your Means - Resist the urge to contribute the extra few dollars it would take for your child to buy the toy that costs more money than they actually have. Instead, talk about saving for a few more weeks so they can get it or explain they need to pick out a less expensive toy.
Let Your Child Help You Pay the Monthly Bills - When you sit down to pay the bills, include your child in the process so they can better understand spending and saving. If you pay your bills online, pass the computer mouse to them to help you click on the dates and dollar amounts for fun!
Pay an Allowance - It doesn't matter what the amount is, but a regular payment allows your child to practice what you are teaching.
Give Your Child Money in Small Bills or Coins - By using smaller denominations, it will be easier for your child to split it up for spending, saving and giving.
Play Money Games - If your child is old enough to play board games, opt for Monopoly or Life. They are fun and teach about money.
Use Everyday Life for Teaching Opportunities - Use your trips to the store to talk about money. When you pay the bill, let them watch you. If you use cash, let them help you count it out. If you use a credit or debit card, explain how it works as well.
Let Them Figure Out the Tip - When you dine out, teach your child how to tip. An easy way to calculate a 15% tip is to start with 10% of the bill and then add half of that figure to determine the correct amount. Another trick is doubling the tax.
Teach Value - Kids, especially the young ones, have no concept of money. To them, $100 may mean you are rich. Teach them that some toys may cost more and that it is up to them to decide if they think the item they want is worth spending their money.
Walk the Talk - Be consistent. If you teach them it's important to save a portion of their allowance, make sure you're doing the same thing with your money. Kids learn by example.