Open a bank account-Around ten years old or sooner, you should teach your kids the importance of a bank account. At this age, kids are old enough to have a real bank account. Make sure to explain how banks work so your child doesn’t get worried that his money is disappearing and they will never see it again. Taking your child to the bank to open an account is a simple way to introduce them to saving money. Your child will learn how savings accounts work, and they will enjoy taking their money to the bank to make deposits. You can even open an online account with them.
Teach investing- Teach your child how saving and investing works. Have your child save at home and calculate the interest and see how fast money accumulates through the power of compound interest. Later, they will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.
Pay for optional chores- Everyone in the family should have chores to do to help complete the work that needs to be done around the house. It is good to pay your children so they can have money to work with to learn these valuable lessons. If you want to pay your children, only pay them for optional work that you assign them if they want.
Keeping good records-Show your children how to keep good records of money saved, invested, or spent. This is another important skill that young people must learn. If they don’t ever keep track of the money they are spending then they will eventually get into major financial trouble. Show your children how to keep receipts from all purchases in a safe place and keep notes on what they do with their money.
Savvy Tips For Teaching Your Child Money Management Skills was originally published on elev8.com