Between the ages of 7 and 10, children begin to understand the abstract concepts required to manage money. Until age 10, kids take financial direction primarily from their parents. After that, peers become the primary influence. This newsletter also is aimed at you, the parent. By receiving information related to the information your child is receiving, you can feel more prepared to help your child develop money skills.
Letting children become part of the money planning and spending process in your home may benefit the whole family. Children tend to be creative and wiser about things than adults believe. Children may think of ways to help improve finances if given the opportunity to be part of the family financial goal-setting process. You may choose to let them help with a small portion of family spending, and help you set goals and plan to make the goals succeed.
A family conference is one way you can teach your children about goals and planning. One family may involve the children in planning the yearly vacation. They decide when and where to go and for how long. Then they choose how to get there and how to finance the trip. Each family member must choose how to accomplish his or her assigned goals. Together the family can decide the best way to reach its destination. Even very young children can have a small part in the plan so the end goal is theirs, too. It is a good way to teach by example.
You also may help your children by offering suggestions of ways to earn extra money. Make a list of activities and how much will be paid for them. Be sure to match your child’s abilities with jobs that need to be done. Shoveling snow, planting and weeding the garden, raking leaves, sewing on buttons and mowing lawns are all ways to earn extra money. Children shouldn’t expect to be paid for everything.