Pay Them for Their Chores
As they get old enough to help around the house, offer them a small “wage” for their work. This encourages them to do the work for their allowance and they feel like they have earned it.
It will also prepare them for the big wide world. You may find that some children love it so much that they’re willing to do more work for more money.
Encourage Them to Save
Encourage them to treat their money like a traditional wage and ask them to save up some for the future.
It doesn’t have to be a lot – just a few pennies and it will soon add up! You could offer them interest by giving them a percent of the amount they have managed to save.
Don’t Buy Them Everything
Just because they want the latest games console on the market doesn’t mean that they have to have it! If they really want it, tell them that they have to save up for it – just like you do.
Of course, you could offer to pay for half of it or keep it in mind for a present if their birthday is coming up. Buying them everything doesn’t help teach them the value of money.
If they have to spend their own money on something, they may think twice about it.
Talk to Them About Money
Teach them all you know about money and explain where it comes from. As they realise that it doesn’t grow on trees, they will start taking it more seriously.
They may start thinking twice about asking for something that seems expensive.
Encourage Goal/Budget Setting
Having a budget is a great way to make sure you don’t overspend. Learning it early is much better and helps to develop a pattern. You should also encourage your children to set goals.
This could be saving X amount of money per week or just to save up for something by a certain date. It incorporate the budget to make sure that money is saved.
Open a Savings Account for Them
As they get a little older, you could open a savings account for them. When you do this, take them to the bank so they understand the way it all works.
They can also ask any questions that they have that you couldn’t answer about the account, such as where the interest comes from and how much they need to save to reach a goal.
Discuss Their Financial Actions
Encourage them to spend their money on what they want but talk to them about their financial actions.
Before they pay for something, talk to them about the benefits of the items but what it means for them afterwards – will they need to spend the money they wanted to save for something else?
They gets them thinking before making a purchase in the future.