How do you educate your kids about money matters?

I teach my child to save money in the savings allowance that will be taken if an instance when she needed money to buy toys that he likes with his own money as early as notified to my children that their parents are not rich people who always have money all the time

Round the table discussions would be ideal, but I would also be casual with them when time permits. The spending of money may be for good works or even bad, but what kids do with it can only be seen by themselves. Therefore, I would coach them and make sure their financial statements are mailed home as well. There is too much risk in letting my kids have ready access to money, and it may turn for the worse if such spending power is given to them.

Teach tHEM to be moderate in eating . THe mind needs to be taught self-control and whenever he tends to overeat you must curb him[for eg, one pastry at a time, one ice cream at a time, two biscuits at a time etc..,] [ Food , nutrition do not come under the category.] Secondly, if he desires something you will have to ascertain the utitlity of the item and insist that he does justice to the item.He has to be told that earning money is difficult and it is an individual's duty to check spending, do it carefully and see that there is no wastage.[howver rich you are] You should never stint on expenditure for essentials but indulgence must be curbed.Only intellectual intelligence can be permitted.

An allowance for chores is a good way to start i think. This way if they don't do their chores they don't get paid. This helps them learn that it is work to bring money in and it's not just a given. After they hit junior high you can set up an account with a set amount in it and help them learn how to manage it by allowing (and helping) them use it to purchase school supplies or school clothes.

This one is hard. Kids usually only want the good things in life---toys, ice cream, etc. When they have money, they want to spend it all. I have started a small savings account for the kid in the house but until now she has not appreciated the fact that I have put her money in the bank. She keeps telling me that I got her money even if I show her the passbook bearing her name and her savings in it. This is really a hard task to do.

I think there is no need to educate your child about these types of issues .They wil l automatically learn them by seeing their parents do . In my opinion , the parents must use the money in a good way and that makes the child do the same . ANyway it was a nice post . Thanks for your post .

Hello narayan2006, My baby is still too young to be taught about finances but i can share through my own experience. My parents taught us about money when I was still small. Thought they did'nt tell me that they are teaching me directly but they found someways to teach me. They would usually take me along when they went for grocery shopping and they ask which to take, which item i want and explain to me why i should not buy it because of the price of the item. They also helped my siblings with my cousins put up small halo-halo stand. where people can buy halo-halo ( a famous refreshing dessert here in my country, it is made of ice chips, jelly, flan, mil, sugar, banana, and legumes)The concept is similar to a lemonade stand. By this, we learned the value of money and how money is earned and how it works. I also learned the value of money through reward system set by my parents. They would usually give rewards for chores done or high grades. I hope I was able to help. Thanks.