Money Lessons You Should Teach Your Kids Early On

As a parent, you want to teach your children every lesson possible before they get to that age when they won’t listen anymore — we’re looking at you 15-year-olds. All kidding aside, besides teaching them to have good manners and be kind, there are some money lessons you should teach your kids early on.

1. Money Doesn’t Grow on Trees: A lot of times, kids will see your wallet as an endless flow of cash. Teach them that cash doesn’t just appear out of thin air — Mommy and Daddy earn it.
2. They Can Earn Money Too: Set up a system that teaches your kids that they can earn their own money by doing chores and other good deeds.
3. Savings Helps Them Get Bigger Rewards: If there’s a particularly special toy or other item your child wants, teach them to save up money for it so they can learn the discipline that comes with saving his or her allowance.
4. Budgeting is Key: In the same regard, teach them that if they want more than one item, they’ll have to budget and decide how to spend their money.
5. Don’t Impulse Spend: Teach your kids that just because they have the $3.00 needed to buy an ice cream cone they want right now, it doesn’t mean they should get it. They can save the money for a better treat — such as a toy or DVD — down the line.
6. Keep Track of Their Money: Teach your kids to keep track of what they spend their money on, so they can see if their spending habits are safe or if they could use a bit of improvement.
7. Don’t Always Believe the Ads: Commercials will make kids think the advertised product is the best thing since sliced bread. Teach them to be somewhat skeptical to curb impulse buying.

The sooner your child learns these money lessons, the better. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From preserving your wealth to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.