From the time my kids turned around 5 years old, I taught them about prices, and money. If I told them, “woah that is crazy expensive, let’s put it back, they actually listened!’ We always went to the back of the store for the clearance items and looked at prices, talked about whether that item was worth that price. They quickly learned about cost. We also enjoy exploring thrift stores, they know they are where the value is at!
Then at around 9 years old (my oldest), I explained to her what a credit card was. Then at around 10 and 6 years old, we all became very familiar about the word “budget.” This was another great way to deter them from spending or asking because items were not in the “budget.” They were very accepting of that concept. My youngest constantly asked “why can’t everything be $1?”
At around the same time, we started them on allowances. They both had chores and what better way to motivate them than with good ole’ cash$$ ? ! We started giving them dollar bills but you know what happens when you give a kid money? They lose it! So after a few times, I realized we have to try something different.
Bank accounts were the answer. It also freed me from remembering to pay them because I automated their allowance! Such a simple concept. This has been a great experience. Another benefit is it’s out of sight, out of mind. They are always amazed at how much they have been able to save because they forget about it. I have one kid who is a major spender and another who saves every penny. The penny saver is the lazier one and the worker bee is my spender. I have a feeling they will both be in the same financial situation but get there in different ways.
Next post, I will discuss about how I taught my kids about the stock market. Yes, in simple terms you CAN teach your kids about the stock market!