Money Matters for Kids

Money matters for kids – Tip #1

Start Early with giving pocket money and teaching your kids how to budget wisely. We suggest as soon as they are able to count.

Money matters for kids – Tip #2

Pocket Money should not be given without being earned. If it is a gift that’s totally different, but in this instance don’t call it “pocket money”. The monitory world doesn’t revolve around gifts and money for nothing (although it would be nice if it did haha) and if we want our kids to get clear concept of money then they must learn by doing something to earn it with age appropriate simple chores for children.

Money matters for kids – Tip #3

Help your kids set a budget and money goals. Let’s use the Share, Spend, Save, Grow Money Principle – I like this best and it’s easy to remember and follow. With this principle your child’s money is broken up into 4 lots:

  • 10% Share – with the needy
  • 30% Spend – on whatever they like
  • 30% Save – to save towards a Short time goal which may cost over $100 for example.
  • 30% Grow – which is for Long term Savings and Investing for their future.

Following this rule helps your kids in many ways with learning about money and how it can help with their future and the future of others.

Money matters for kids – Tip #4

Coach your kids about their money along each step. Once a budget and goals with money have been set, don’t just expect your kids to do the right thing or follow the budget, you may need to coach them along the way. Some kids will automatically follow the plan each time they receive money, others won’t and need extra help. Keep coaching your kids about money until they tell you they don’t need your help anymore.

Money matters for kids – Tip #5

Lead by example with your spending habits. Whether you realise it or not your kids are watching you and your spending habits all of the time. As soon as they understand the value of money they will be watching. Limit the amount of shopping trips as a leisure activity, as your kids might start to think that money is an unlimited resource and that spending is fun.