Do your kids understand about money?

She should at least have some knowledge by age 10. You can start teaching her the value of money by starting a piggy bank for her. Give her pocket money to save up. Tell her if she wants to buy anything (toys and such) she have to save up for it. She will soon realise money is not easy to come by and she will be more careful about spending. Start a bank account for her too. Teach her how to read her bank statements. Explain terms like credit and debit and interest. Tell her what happens when a check bounce. You know you could instead make her a packed lunch instead of giving her money to buy lunches. Packed lunch are cost lest to make. Packed lunches costs at most 1-2 dollars to make while bought lunch can be 4-5 dollars. Have her bring a water bottle too so she don't need to buy bottled water/soft drinks for lunch. When you have friends over and are talking about money matters, let her listen to the conversation. She may learn a few useful things. I'm sure you do keep an expenditure list. Let her watch you do the data entry. Answer her questions if she have any. You can start letting her involve by letting her write in some of the entries and letting her do the calculations. My family always talk money matters over dinner. I learnt a lot from just listening.

You should give her some sort of an allowance and tell her that if she wants to buy her lunch then she has to use her allowance and if she wants to buy something frivolous, then she has to use her allowance. She will learn fast how far a dollar goes.

Oh I know what you mean....my bf's son is 21 years old and he doesn't seem to have a understanding of money.He's supposed to pitch in a certain amount of money every month to help pay for bills since he lives with us.Half the time we are told my paycheck was to small this week....I can't afford to give you anything. I sure wish I could do the same with the utillitys...lol. Since your daughter is still young....don't worry....it's really simple to teach her the value of money and that it doesn't come for free. Next time she would really like to have something(that you know she doesn't really need).....make her work for it.She can take out the trash,wash the dishes etc. and for every shore she completes.....give her a set amount of money. Along with this you can explain to her that this is her money and she can use it as she sees fit. So when the time comes that she wants something....point out to her that she has been getting paid and that she should be able to use her own money to buy whatever it is she wants. Trust me....she will be upset with you over this....but in the long run you are teaching her responsibility and she will value the things she has a lot more.

Give her chores around the house. Give her an allowance for doing her chores, and then open a savings account for her. Have her manage her own account (with your help and guidance when necessary, of course). That'll teach her responsibility, too. Before you do this, of course, talk to her about it. Explain how credit cards, money orders, checks, savings accounts, and bonds and stuff work, and where money actually comes from. That'll clarify a few things for her. Hope that helps!

The best way to teach her is thru experience. Every time she wants something that she doesn't absolutely need, ask her "and how much do you think that will cost". Have her make a list of the things she wants and what she thinks they will cost. Then, go looking for these things at the store. Don't buy them..and inform them that you will not be buying them at least that day either. She doesn't have to know how much you have in the bank, or wether you even have a credit card. But, she should know what her toys cost to buy, and what it takes to get her new things. You can also ask her where she thinks she could get the money for these things and see what she comes up with. It will gauge what is really going on in her head because if she wants something expensive but can't come up with a way to pay for it, then she isn't really ready to handle very much money yet. However, if she can plan out a way to make "X" amount of dollars in "X amount of days, and have to spend some of it on things she needs and some on things she wants. (It can be a game. She gets to play grown up for a couple hours and you sit down and see if she can figure out how to spend a weekly paycheck without spending it all on toys or something lol. Just a thought. Not sure exactly if she would be ready for that. But if you give her an arbitrary number then make it close to whatever it is you bring home or hubby brings home that way she can have a realistic view of what your budget really looks like. Explain to her about how some bills must be paid...etc. Hope that helps :)

Understanding about money it not about the matter of age or accomplishments. you know the reason why people struggle financially is because they spent years in school but learned nothing about money. What is the result? The result is people learned to work for money, but never learned to have money work for them.

As early as possible, I am teaching my 3 year old the value of money, especially she wanted this and that. She got a piggy bank and her own bank account. She also knows that my debit card can buy stuff and I informed her that that is why we go to the bank to deposit money so I can buy stuff with my card. But the easiest way that I explained to her and she understood quickly is telling her that Mama and Paa work to earn money so we got a house, food, diapers, milk and we can go to the mall and get her a toy. I tell her that in order to buy one of her Disney Princess dress, her father has to work an hour and that make Papa tired. It sink into her quick and she understand now that she only gets something if we got money to buy it or there is a special occasion.

when my youngest was 5 or 6, she said she'd like to buy this and that, and i told her, we just can't afford everything that we want and that we can buy only the things that we need, and that if we have extra money, we'll see about that. so i asked her to help me list down the things that are important to buy for the house and school. she did came up with the important ones (which was a surprise for a young girl to be very perceptive), except for one - a seasoned fruit at that time. i asked her why we have to buy those, and she said because it's important to her. i said, i saw that it was fair so we bought that too. kids should be taught that money is just a commodity for getting something that is important, and that having extra cash can be an opportunity we sometimes enjoy but not for always. it's also important for them to have an idea of know how much you earn as against how much you spend in a month's time for example so that they will understand your spending capacity and not go overboard asking for this and that. my kids had made it a habit to ask first, if we do have money for their likes, and i tell them honestly, if we do or don't have. it's also important for them to realize that you're working hard to earn, so they learn to value work, industry and good money go hand-in hand

No they do not understand money, my son takes his salary 25,000 in our country after 10 days he has no money. From childhood to now he gets whatever he wants. I dont know how to make them realize how important it is to save money instead of spending unnecessarily.

I always gave mine their lunch money on Monday morning or Sunday evening. That way they had it for the whole week and if they spent it on something else, well then it was gone. It is hard today with people spending so much money to teach children the real value. I would give her an allowance, of course, she has do to something extra around the house to earn it. Then anything you wouldn't normally buy for her, she buys from it or saves her money until she can. She'll need to make some decisions and it will good for her to start learning.

lol, my four year old is the same, if she wats something and I say I have no money she tells me to go to the cashpoint, but when i buy things online because she does not see money cross hands she assumes I don't ahve t opay for it (I wish!). What I do now is give my daughter 10 pounds per week, out of this she has to pay her school 1 pound for her lunch money at the beginning of each week for her dance and musical theatre class which is 6 pounds and the rest she can keep for herself, she is learning fast how quickly money goes now, it is quite funny to say the least how her attitude has changed from when I first gave her the note and even when she had 3 pounds left over, it is only now that she realises how much things actually cost that she has got into the habbit of saving for her collection of dolls, you could try this way if there is a comic or collection your daughter likes, give her half of what it costs then give her the other half the following week, if she has spent it she will realise that she cannot get the thing she wanted, also to earn the money put price tags on certain chores to ensure she earns the money, if she refuses then she will go without. Well that' smy tip for the day.

children understand about money after they have known or seen friends. We can't teach them to understand or not to understand about money, because they will know it by themselves. But the best way to teach is how to manage money they have had. tell her that money is hard to get, and her parents work day and night to get money for your family. What do you say?

i think for children (at any age) to understand money, they have to work first before the concept of money kicks in.

I have been working for myself since I was 13 and now im 19 and attend college full time, completing a double major in finance and accounting. I currently own a web design firm and run a monetized blog. I think its important to learn about money because its easy to swipe a credit card, but not so easy to actually pay the bill. I think you are taking a step in the right direction!

ofcourse,in 2007 you cant see any child not understanding money

If according to me possibly a child should not too much in spoilt what next in the matter of money, that will make our child to malas.I'm sory thank you

well you already know i don't have any kids, but that's not the point here... When i was growing up at about the age of 4 i had everything thrown on me, one day my father came in taught me how to make 2 meals, knew i already knew how to do dishes change diapers and do most all of the other housework he locked my mother up in a room and left me. After a while of doing all the housework and taking the parenting responsibilities for the kids my father decided to also hand me his and his friends taxes, and i was also responsible for paying the bills online. Through that, i learned faster than any child ever should, but i have a few ideas that may come in handy. Which is why i'm real glad i grew up like i did, how many kids have the opportunity to be smarter and nothing like their parents? I DID!!! haha. Okay, down to business hun. If you can afford it, i think the best way to do something like this is to start with a weekly or biweekly allowance. BUT she needs to have ground rules, I would sit down with her, make a budget of the money she gets every week, lets say you give her 50 bucks. 20 needs to be spent on food and food alone for lunches, ten needs to be put away in savings for something that may come up or something she needs and the other 20 can be spent on something nice for her, but she can't dip into the funds one way or another for anything else. now this is just hypothetical, i don't know prices around there or anything, but i do know this works, i taught my brothers this way, they all have money in their savings, and they haven't spent any of it, and unless it's important, they don't go spending their spending money either, it usually gets thrown in their savings as well. with all these explanations, you should be able to get her to understand the necessity of it all. You can also do something like take a few dollars off that allowance for 'rent' to teach her what it's like to have to pay a bill (and just put it in her savings or something) i've seen that one work too. But this way they understand budgeting, and they also need understand that when the money flow is gone, there's no way to get any more, at all. i also had the kids show me the money that they had saved every couple of weeks and receipts for everything that they spent it on as a rule guide, it really showed them how to be responsible with money, and I'm hoping with this experience that they can get as far as possible in life and not have to go through faltering money times like the rest of us, my fingers are crossed, their all still youngens, well okay one's 17 now, but when they do get out i want to know they can take it.

Hi Caila611. Teaching children about money is pretty difficult sometimes. Every child is different and you have to adapt all the time to get them to really understand the concept. While we concentrate on keeping our bills and everything paid before spending our earnings, it's usually done without explaining the reasons behind it to our young children. They can't really appreciate that our sacrifices are for their safety, comfort and well being as well as our own. It's not until they have something they can be responsible for that they can truly appreciate it for themselves. My daughter is 21 now and is actually managing to support herself without having to ask for help all the time, but what a struggle to get her to that point. For my daughter, the turning point came when she had to earn the money to feed the sugar glider she decided to bring home. While I did finally come to love the little critter, I was a bit upset that she was bringing home another mouth to feed without asking first. Oh she did promise to buy it's food, but until she had to start paying for it, she couldn't understand my objections. It was nice to finally have her ask which chores she could do that would let her earn the money. I can't tell you how much I paid over the years to have her match socks or wash dishes though, lol. Hubby would always offer a set amount for washing the truck too. When she was a teen, that was her favorite way to earn the money to go to the movies with her friends or for things that she wanted to purchase. Funny thing was, hubby always offered the same amount but sometimes it was dirtier than others, so she got pretty good about negotiating and getting an extra few bucks from him when she needed it and did a good job. :)

Start by teaching the essence of money. And what good use can money do and its disadvantages. How money is made, and that money should be earned through hardwork. Don't let her be spoiled and that she should learn how to earn her money. Before you give her money, ask her to participate in the household in exchange of her share in the family's income and assets.

I personally, do understand about money...I try to save money on and off...so yea..