Teaching Kids about Money

49% of teens are eager to learn more about money management - 35% want to learn from their parents.

They asked the teens what would they be most interested in learning and here is what they said. "We want to learn about checking accounts, budgeting, investing, saving, and financing for large purchases".

43% of parents have discussed the importance of needs versus wants, compared to 64% who did so last year; and a surprising 42% of parents have not taken any steps whatsoever to discuss financial basics.

Today, schools are so concerned about testing and meeting standards that life lessons tend to get pushed to the background. Even if schools can teach about this subject it's usually done from a theoretical or textbook perspective, where the scenarios can be controlled.

Parents, you on the other hand have the ability to incorporate real life into your teaching and as you know, no one can control real life. Think of all of the wonderful lessons you can teach your child just by dealing with everyday decisions you have to make. Whether it's going to the grocery store, the bank, shopping for clothes or giving money in church, these are all teaching moments that never could be duplicated in a school environment.

Just by helping kids understand your own money decisions can give them insight into budgeting and money management. For this to happen, you need to allow your children to look at your finances. You don't have to show them everything but you can't shut your kids out either.

A good place to begin is by creating a budget for your child and for your house, but let your children give their input. Look at some different ways your kids can earn money, (even if it's just delivering newspapers) and help them develop an actual budget with their own money. Also, allow them to look at the house budget as well. Take them through the process of understanding what you can afford now and what you have to save for. The beauty of doing this is if you ever have to tell your child we can't afford that right now, they may understand it a little better. Budgeting is vital in helping a child understand money management but it only works if you are committed to creating one and sticking to it.

Another area to consider is when it relates to your income. In many households across America many children have no idea how much money their parents make or what their parents had to do to earn that money. All most kids ever hear is "money doesn't grow on trees" or "I work hard to keep a roof over your heads". That may be true but how do you monetize hard work and what does that mean to a child. Children need to understand that money comes in exchange for time and work. The more they understand how money is earned the more value it will have to them.

Parents, look at all the ways you can help your children. Start by looking at all the different ways for kids to earn money and help them budget it. Let them help with planning the family budget. Allow them to look into your own financial situation, whether good or bad. Teach them about saving and spending because life is a classroom that no school could ever duplicate.

For more information, check out our blog and claim your free ebook "Top Ways for Kids to Earn Money" which will provide you with information and ideas on helping your kids start their own business so they can become their own little entrepreneurs.