The young ty­coons

Open­ing chil­dren up to the world of fi­nance is a good in­vest­ment

Central and North Burnett Times - - HOME - With Jody Allen

RE­GARD­LESS of whether your child is two or 22, he or she will come face to face with money at some stage. So let’s talk about teach­ing your kids about money. Be­low are some of the most im­por­tant top­ics to dis­cuss with your chil­dren when it comes to fi­nances. Some ques­tions are de­signed for lit­tle savers while oth­ers will need to be ex­plained later on down the road.

Get your child off to the best start by ex­plain­ing how money works.

◗ Money is for buy­ing things, not eat­ing.

This is the first les­son you will teach your chil­dren and usu­ally this les­son comes in in­fancy. As soon as your baby is able to crawl you can ex­pect her to take an in­ter­est in money and your wal­let. So keep coins and bills out of reach to avoid hav­ing these items shoved into her mouth.

◗ Money is valu­able.

Your chil­dren should learn to iden­tify what money is (in re­la­tion to pa­per) and what goes into the bin and what goes into the wal­let. Money shouldn’t be thrown around the house or your chil­dren may as­sume that it is not im­por­tant.

◗ Sav­ing is just as im­por­tant as spend­ing.

Spend­ing money is so easy and so much fun but sav­ing for a big goal can also be re­ward­ing. Try to teach your child about the big pic­ture and end goals by sav­ing for a big project to­gether.

◗ Sav­ing can re­sult in a big­ger re­ward.

Young chil­dren will not be able to un­der­stand how in­ter­est works. How­ever, Forbes sug­gests that chil­dren aged 10 and older will be able to grasp the con­cept of ac­cu­mu­lated in­ter­est and how sav­ing your money can mean you are ac­tu­ally mak­ing more than spend­ing it right away.

◗ It is im­por­tant to work for your money.

If your child is get­ting ev­ery­thing handed to him then he will have a hard time un­der­stand­ing that you need to earn your money. Don’t give him a false sense of en­ti­tle­ment. Help him to un­der­stand why Daddy goes to work and how he is able to af­ford clothes, toys, etc. Set up a chore chart and let him work for his money.

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