Fun Ways To Instill Financial Responsibility In Your Child

At a very young age, children learn the basic ins and outs of finances, which can be both a good thing and a bad thing. What this does is teach them about spending and saving early on, which can be of huge benefit to them. What may start out as a simple game of ‘store’ often results in a better understanding of educated purchases and the value of a dollar. But as parents, what else can you do in order to educate your children about their finances? We’ve got a few ideas below which can be both fun and educational for your young ones.

• Play a budget game. One of the easiest ways to teach your children about budgeting is to set up a market — perhaps with fruit and other healthy foods. Tell them that these pieces of fruit are all theirs for the day, but they have to make them last. Instead of letting them eat everything at once, explain how a few at a time is the better way to enjoy them, and make sure there’s some for later as well. This can be translated into money during the coming years.

• Replicate a ‘Store’. Another easy way to show them what is important is to play store, and attach prices to specific items. From here, let them know that they have necessary items like toothbrushes and food for dinner, before allowing them to buy a toy or a new hat. This will teach them that there are important things to take care of before buying material items and novelties.
• Teach them about work. Another way to teach would be to show them that everything in life isn’t free, and the value of a dollar is actually large. This can be done by making them perform chores around the house for a few dollars here and there. What this will do is show them that in order to make money, there is sometimes work involved, which helps them understand what their money really is worth.

Of course, financial responsibility goes both ways, and should be something utilized by adults throughout their entire lives. If you or someone you know is in need of financial planning assistance, estate or investment planning, make sure you contact the professionals at American Investment Planners, LLC. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.