Teach Kids How to Handle Money

Give Allowance To Your Child:
Giving some money as allowance to your child is the first important step in teaching him about money. For how could he possibly learn to spend wisely when he has nothing to spend in the first place? Thus, allowance is a tool for the kid. The amount may vary but the idea remains the same; give some money to the child so he could learn how to spend.
Bring The Kids Along When Buying Groceries:
Bring the kids when doing the grocery so they can have a hands-on experience on the prices of commodities. The experience can have a sobering effect on them, and can make them money smart, especially if they are involved in the making of family budget.
Pay Them For Completing a Task:
You hire a utility man to paint your fence. Why not let your kids do the job and pay them instead? Pay your teens for completing certain tasks. In a way, they will learn hard work and the value of money. But bear in mind that kids should never be paid for sharing household chores like cleaning the toilet, or washing the dishes.
Teach Them How To Use Their Money;
Now that the kids have money, the next step is to instill in their young mind how the money should be spent. No, don`t give them a long list of what to buy or what not to buy. That decision should come from them and you should leave it at that.
Teach Kids Not To Work For Money, But Instead, To Work With Money:
In other words, teach kids to become entrepreneurs. Encourage them to be creative and make things they can sell and make profit. Encourage them to invest their savings in little ventures that will make their money grow. Painting, cross-stitching, or baking cookies are just a few ventures that will challenge children`s creativity and bring out the entrepreneur in them. to further encourage children, talk uncles and aunties into buying the kids` products.
Involve Your Kids In Your own Budgeting And Spending:
The parents of four kids teach money skills to their children by involving them in the making of a family budget. they all sit around a table with the week`s money on it. The parents decide how much should be spent on food, clothing, gasoline, etc and then allocated the money for it. The children learn firsthand where the money goes and how much is left, if there is any, after all expenses had been taken care of.
Encourage Kids To Share Some Part Of Their Money:
The way to double your money is to give, following the biblical mandate, that whatever you give will come back to you a hundredfold. make sure that you instill in their young mind the willingness to share their money to the needy. Encourage them to donate some of their allowance to the poor or to charitable institutions. The best way to do this is, of course, by your own example. Let them see you donating goods, money or services to the impoverished neighbors and children will immediately catch on with the idea without much prodding on your part.