Tuesday, August 11, 2009

Teaching Kids Good Spending Habits

I know I have seriously lacked in teaching good spending habits with my older children early in their childhood. I do think that I am doing a much better job now then I have in the past. Thankfully I have one child who is a natural saver but the other spends money before it even hits his hands. My younger two children are just learning about money, so I have been doing a little reading and have found some good tips about teaching children about money.

First help your children learn the value of money at an early age. Talk to your child about how many hours you may have to work to buy that new video game or Lego set. Or, if they are older and have part time jobs, how many hours they would have to work to earn the item.

It is ok to include your children in on discussions about the family finances so that everyone can help take part in making goals and watching spending. However, if you are really having financial trouble go easy on the details so your kids are not worried. You do need to be honest and tell your kids you cannot afford something they ask for if it is not in the budget.

To instill good decision making about money into your kids include them in the decision making process. Help them weigh out the pros and cons of making a new purchase. Take them with you to the grocery store and compare prices. Show them how to save money by using coupons and reading labels. Also take them with you to garage sales and thrift stores so they can see how far you can stretch your money.

Remember to set a good frugal example for your kids. Just as with others areas in life your kids are watching you and follow your lead.

How do you teach your kids about money?

Linked to Works for Me at We are That Family and Frugal Friday at Life as Mom.


  1. I too think it's important that your kids know early on about money. I have a four year old and he is learning about using coupons and not spending money when we don't need something. He's never been one to cry out in the stores because he's learned that he doesn't get something just because he wants it... we have to need it or it may be a treat sometime, but we never have spur of the moment purchases.

  2. Good tips! Our first baby is due in February and although I'm not sure how we'll instill these traits, I know that we will try. I was raised with a weekly chores = weekly allowance type schedule and it worked. My parents also spoke to me early about the importance of staying away from credit cards, having a good credit score, etc. (I have a lot of my money tips on my blog under the Money label if you're interested). Good job on parenting and keep us updated!

  3. It IS really important to teach your children about money. Good ideas! Thanks for visiting my blog!