When children are small they are usually excited to find a penny under the sofa cushion or to be presented with a dime when they’ve helped with a small task. This fascination with money can quickly fade and children lose track of what it means to save.
When you sit down with your spouse or partner to set a family budget, it’s wise to include your children in a part of the process. Children don’t need to know the details about mortgage costs or insurance premiums, but they can be included in certain aspects of household financial planning.
Teaching your children the value of a dollar isn’t really that difficult. Children understand at a fairly young age that in order to purchase things you need to pay for them. They watch their parents open their wallets and remove money or a credit card to purchase everything from grocery items to toys. They understand that mommy or daddy had to go to work to make that money.
Giving a child a list of chores to complete and a value for each one helps them see that with hard work comes reward. The chores don’t have to be complicated, for young children it can be something as simple as picking up their toys or setting the dinner table. They will feel the reward of a dollar earned when they are able to take that money to the store and purchase something they really want.
Setting time aside to set a household budget is a great idea and incorporating everyone’s contributions to the home is important. Placing a small amount of money aside for your children’s allowance each month will give them a great head start for their own budgeting needs later in life.