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Elementary Money Lessons to Teach Children

"Everything I need to know about life, I learned in kindergarten."  We've all heard that saying many times before. However, most of us did not learn about financial well-being in kindergarten, and neither will your children. In this article, we will show you the main things to teach your children about finances.

Many of us have made financial mistakes; some had to learn the hard way because their parents failed to teach them basic money management skills.  Don't let the same happen to your children.  Teach your children about money and finances.  By learning the value of money and how to manage it properly at an early age, children are more likely to take on similar values themselves.  Most children who are not prepared find out very quickly - often during their first year of college - all the mistakes that can be made. 

Here are some of the main topics to discuss with your children, to teach them the value of managing their money:

Saving:  Open a savings account with your child and allow them to deposit money often - from birthdays, holidays, or allowances.  Many banks have special programs for younger money holders.

Earning:  Let your child learn how people earn their money, by giving them an allowance and/or paying them for chores that are out of the ordinary. If your child is old enough, suggest he or she earn money by mowing the lawn or baby-sitting for neighbors.

Goal Setting:  Instead of giving your child the money to buy whatever it is they desire, have them set it as their goal. They can then plan and save to reach that goal.

Discussions: Include children in family financial planning.  Explaining to them where your money goes is helpful and can also be used as an explanation as to why they can't have something they are asking for.  If you discuss how bills need to be paid so you have water, electricity, a car, a home, and even television, you may be surprised at how understanding they can be.  This model of proper budgeting will be something your children will remember as adults.

By approaching your finances with an open attitude, you can help your children learn to manage their money. The best money lessons are those learned at home.