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Don Adriano
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How to Teach Kids About Money

As kids grow, they tend to become more thoughtful about money, and it's a process to teach them how to save more, shop wisely and earn money through small jobs. The current economic troubles provide a fitting time to school our kids on personal finance, according to Eric Tyson, author of Personal Finance for Dummies. If you're feeling guilty because you can't buy your child that video game system he desperately wants for Christmas, or you're asking him to choose between playing recreation basketball or taking karate lessons this winter, Eric Tyson has one word for you. Don't. In fact, he says, now is the perfect time to teach your kids some valuable financial lessons and learn that budgeting is how the world really works. Do you buy everything your child ask you to?How you explain your child the value of money?

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Don Adriano
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Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Consider beginning as early as two years old. At the age of two, many children begin to enjoy doing small chores. Practicing these small chores will prepare your child for later on in life when you begin to give him an allowance for doing chores. Examples of chores you can practice with your two year old include:
-Having your child put away his toys.
-Having your child ‘help’ you in the kitchen.

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Don Adriano
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Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Begin to introduce your child to different forms of money when he is three and older. At this stage, your child may not fully understand money but you can slowly introduce to him the name of different coins and currencies. However, adult supervision is highly advised to avoid dangers like swallowing of coins.
Hold up a coin, like a penny, nickel, dime, or quarter, and tell your child the name of the coin.

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Don Adriano
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Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Explain to them how much things cost. Some parents are surprised to find out that their kids don't have a very good grasp on what things cost because they have been sheltering them from this always. A great hands-on way to open their eyes is to take them on a "money tour" around the house. For example, kids might not understand that hot water costs more than cold water, or that bumping up the heat results in higher power bills. This exercise will teach them how they can conserve and thus help the family save money. You can also pile up all of the bills for the month and have them look at the amount on each one. Show them what the family's cost of living is and again reiterate the areas where they can play a part in reducing the costs.

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Don Adriano
Last seen: Never ago
Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Giving gifts.Parents like to be generous while giving money to their children however you must ensure that they are taught the concept of accountability. Teach them the importance of not over spending their budget. While they should not be dictated on how every rupee ought to be spent, ask them once in a while how they spend their pocket money to teach them to keep track of money. Encourage kids to save money to purchase something they’d like to have. Say your 12 year old wants a new bicycle or a watch. Make a deal with him/her that when he/she accumulates a portion of the money required you’ll chip in the rest.Children will be more responsible with money when they know the effort it takes to procure it. You can encourage your older teens to take up small jobs at cafes, cake shops or eating joints to earn pocket money in the vacations.

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Don Adriano
Last seen: Never ago
Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Consider beginning as early as two years old. At the age of two, many children begin to enjoy doing small chores. Practicing these small chores will prepare your child for later on in life when you begin to give him an allowance for doing chores. Examples of chores you can practice with your two year old include:
Having your child put away his toys.
Having your child ‘help’ you in the kitchen.

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648

Don Adriano
Last seen: Never ago
Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Explain to your child that you should only buy what is necessary. When your child turns two, he will already know what he wants a lot of the time, even if he cannot vocalize it properly. For example, when you pass a toy store, your child may indicate that he wants a particular toy.Make it clear to your child that going inside the store does not always mean that you have to buy something; there are times when simply ‘window shopping’ is the better option.

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Fabio
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Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

Of course, a child should understand what money is and what it is used for. That's why when a child is mall (3-4 years old) you may take him or her to the supermarket. Show the price tags and tell which products have which price. And when you pay for the purchases, ask your child to give money to the seller. If your child already knows numbers and can count, ask him or her to count money before giving. If there is some rest, tell a child that he or she is able to choose how to spend it (for example, to buy a lollypop). And you can also play a role-play at home about buying something and paying money for it.

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Fabio
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Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

If a child is older (6-7 years old), then it is time for pocket money. Give it to your child regularly in small amounts and let him or her manage it the way he\she wants, present your child a box where he or she will be able to put money. You can give him or her advices how to spend pocket money ("You can buy a box of sweets now, but if you wait a couple of months, you will spare enough for a bicycle you have been dreaming about"), but never give money saying directly how a child should spend it ("Here is money, buy yourself a new jacket")

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Fabio
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How to Teach Kids About Money

A teenager who wants to buy something expensive for himself\herself should not depend on parents totally. Teenagers can do some part-time work, during summer holidays (of course, parents should control this aspect - a child should not overload himself\herself physically or do something illegal or suspicious)because their main work is studying and parents should remind them about it from time to time. Working a child will understand the real value of money and will manage it much more rationally. And then, even if a child doesn't earn enough, parents can add some sum of money to that which was earned - encourage your child for trying.

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Don Adriano
Last seen: Never ago
Joined: 10/17/2016 - 01:52
How to Teach Kids About Money

When your child is waiting in line, say, to go on the swings, discuss how important it is to learn to wait for what he or she wants.Create three jars – each labeled “Saving,” “Spending” or “Sharing.” Every time your child receives money, whether for doing chores or from a birthday, divide the money equally among the jars. Have him or her use the spending jar for small purchases, like candy or stickers. Money in the sharing jar can go to someone you know who needs it or be used to donate to a friend’s cause. The saving jar should be for more expensive items. Have your child set a goal, such as to buy a toy. Make sure it’s not so pricey that they won’t be able to afford it for months. “Then it just gets frustrating, and it gets hard for them to wrap their head around. It’s really more about her being cognizant that she’s saving for a goal than, ‘Oh, I really need her to scrape together those $10 to buy the tutu.’ You want to set them up for success,” says Kobliner. If your child does have an expensive goal, come up with a matching program to help her reach it in a reasonable timeframe. (Kobliner says that while an allowance is a personal choice for every family, at this age, a small allowance could help a child save for these goals.)

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