A four- or five-year-old child may seem too young to grasp the concept of money management. Still, even at an early age, children waiting in a supermarket checkout line can see that money buys things. Therefore, it is vital to begin as early as possible to help your child understand the value of money.
Here are some suggestions for introducing a young child to the world of finances:
Teaching your children the fundamentals of sound money management now may help them build a financially independent future.
Most parents want to help their children financially, but not by forking over cash with no strings attached. Use monetary gifts as a teaching opportunity. Teaching your children to be savvy savers could be the best gift you ever give them. Lessons in financial responsibility may not be as fun as large, lump sums of cash, but they are significantly more valuable. We have all heard the old proverb, “Give a kid a fish, and you feed them for a day. Teach a kid to fish, and you feed them for a lifetime.”
Don’t just give your kids fish – teach them to fish.