Teaching your child about money management is an important lifelong skill that will enable them to be financially successful later in life. According to FamilyEducation.com, everyday spending decisions can have a far more negative impact on a child’s financial futures than any investment decisions they may ever make. That is why is so important to make sure your child understands how to save and spend wisely from an early age.
So what are some of the best ways to teach kids about money? At what age should you introduce money and saving to your child? What are some ways you can do that? Is pocket money a good idea? How do you teach responsible money management? We sat down with Stefan Korn and Scott Lancester from DIY Father.com to answer your questions on how to teach kids about money.
DIYFather.com is an online forum that offers practical parenting information specifically aimed at dads. The site has hundreds of blog posts from a wide range of parenting including finance and budgeting. DIYFather aims to assist men to become the best fathers they can be by using stories to inspire and encourage fathers to spend time with their children.
To find out more parenting tips from DIYFather go here. Stay tuned for another great video from these guys coming soon!
Having trouble managing your family budget? Click here for an easy, time saving way to save money and get ahead.
At what age did you start teaching your child about money? What did you do? Let us know and comment below!
Thanks Alicia for sharing such an awesome video with us.
I agree that teaching children about money is key to raising a healthy wealth mentality in our children.
I personally recommend the “6 Magical Piggy Bank” Money Management method for teaching our children how to make their money work hard for them so they won’t always have to work hard for their money.
Check out my blog video where I explain how these special 6 piggies and their magic work:
http://teachingchildrenaboutmoney.com/blog/6piggys/
And thank-you Alicia for posting your comments on my blog:
http://teachingchildrenaboutmoney.com/blog/88/why-business-for-kids/
I appreciate your comments and feedback. It’s my pleasure to meet a fellow mom sincerely interested in raising our kids financial IQ’s.
You’re awesome!
Cheers…Amanda van der Gulik…Excited Life Enthusiast! (and fellow Kiwi) ;o)
Hi Amanda, so great to hear back from you!
I really enjoyed reading your posts, and the latest video asking children about money is adorable but also a bit worrying! A “money shop” haha if only! http://www.teachingchildrenaboutmoney.com/index.php
Great idea video about the piggybanks I recently found this piggy bank that I really liked. It is divided into four compartments: saving, spending, donating and investment and I think it is a fantastic way to explain the different areas of finance to a child. I really like this one because donations are included and teaching children about charity and helping others is something I believe needs to practiced regularly. http://www.amazon.com/gp/product/B0002HRWBQ?tag=cc-bad-20
It is so important to make sure our kids are well educated about finance. I remember as a teenager I was upset that we weren’t taught practical ‘life-lessons’ in class – how to manage your finances, invest, own a home for example. I am not a mother myself, but when I do have children I want to make sure they can create a successful future and I’ve very keen to see others do the same.
Keep up the great work and stay in touch! I very much enjoy discussing ideas with you! Go Kiwis!
Cheers from Alicia
I really like that piggy bank, I might pick one up for my little one. He loves playing with coins, this will be a great way to get him to divide the coins into the four compartments.
Thank you heaps!
Thank you both Amanda and Alicia for your great video and sharing. I like the 6 piggy bank concept. Your information comes in very helpful for me as I am still at the “giving allowance” and “how kids can earn some money” stages. You can refer to http://www.kids-activities-learning-games.com/kids-and-money.html on my sharing.
Thank you S.Yean! I checked out the link, it is great to see you so involved with kids and finance! You are right, kids love games and the only way to make learning about money interesting is to make it fun. Look forward to hearing more from you!