How do you teach kids money management?

Teaching kids to manage their money well is a good thing, but first, they have to understand what money is. To do that, they need to understand that money doesn't come automatically and that no one is entitled to it - in other words, everyone has to do something to earn it. Start with chores he can do and pay him for them. Don't pay him if he doesn't finish them and don't be over generous with payment. Show him the money, help him learn to count it. Show him that so much work equals so much money. From that basis, you can begin to show him that X amount of money is exchanged for certain goods - and emphasize that so many hours will buy such and such a thing. As he grows, help him set up a fund (maybe in a piggy bank) to save for certain things. Have him set aside a percentage that goes into an interest bearing savings account and show him how much the bank pays him just for leaving his money there, without having to put in any hours of work to get it. This should help set in his mind the value of interest working for him.

My mom had a great technique when I was a kid. When I was a kid, I got $25 for my birthday. I was about 5 years old if I remember right. My mom made me make a list of the things I'd like to buy, then she took me to two different stores to write down the prices. I learned to shop around.

One year, I took my son shopping for summer clothing, we went to Wal-Mart, he hated everything. He showed be the shorts that he wanted, they were $40, he was 11 years old, I said NO. That fall, he started working as a hockey referree, all of a sudden he realized how hard it was to earn money and he did good...he got $25 for an hour game. The next spring, I showed him the shorts he wanted the year before, but now they were $20 at a flea market. I said he could buy them, he said No, that I could buy him his shorts that year at WalMart. Learning how hard it is to earn money is a great way to teach kids money management.

Money management, even grown up people are not clear about it, and you want to teach it to your 5 years old son. Let him remain a kid for some more years. Throughout his life he will worry about money and its management. Why do you want to burden him with this at such a tender age?

hi happy thoughts, yeh its the imporatnt thing to teach the kids money management as well as valuing money.To teach them money management start giving them money a certain amount in amonth only once ask them to maintain their expense in the money provided by you.teach them to save money. ask them to make a day book to enter their daily expenses. if they ask for expensive stuffs first tell them know as your budget will go for a toss and then if is worth then get them on thier birthday or some occassions you wana gift them.

Hello you have to begin to give money and start encouraging the boot in a safe an saying they can not spend much he will learn.

i am not a mom, but i was a child. and i know how my mom teach me money management. when i was a child, my family was very poor, so i had no extra money with me, but my classmats had extra money with them, and they can buy some snacks by themselves. i admired them very much, but i knew that my mom and dad was very tired after work everyday, then i didn't want to ask money from them. frankly, i was not a frugal girl, but now i'm frugal. because i know it is hard to earn money, so i think it is a good way to let your son knows it is hard to earn money. but i have no a good tip about it.