Teaching Your Child About Money-Skills  Now that you have decided to give your child an allowance for doing chores around the house, it is time to teach him about money-skills.  Just like with anything else, you have to make sure to teach him how to manage it, responsibility, and saving. These may seem like easy tasks, but you have to remember that he has been to many stores and probably has an “I want” list the size of the entire world. Remember all those times he said “I want that toy!” or “I have to get that $100 pair of shoes!”? Now that he has his own money, if you don’t teach him how to save and spend it wisely, he will either waste his money on those items a lot quicker than you may think.

There are many ways to show them money-skills and teach your child how to properly manage money. When I started giving my daughter an allowance, I started out with a small amount and with only one chore. She would get $10 a week if she kept her room clean. In order to get the entire amount, it had to be done every day. If she missed a day of keeping her room clean, then she would get some of the money from her weekly amount deducted.

 After giving her the money, I would have her decide what she really wanted and then take her to the store to find out how much it would cost her to buy it. If it was more than what she had, then she had two options. She could either choose something else or save her money until she had enough to cover both the item and the taxes on it. If she chose to buy something else that day, then I would have her look around and check the prices out to see if she had enough. I never covered the taxes on any item that she bought because that would defeat the whole purpose of the lesson.

If she chose to save up her money until she had enough to buy a particular toy, then I had her pick somewhere safe to put it, usually a clear jar so she could see how much was in there. Each week, when she put the money in her jar, I had her count it and tell me if she had enough to buy her new item. If we knew how much it was and then added sales tax, it was much easier. She would then compare how much she had in the jar to the final price that we came up with and tell me if there was enough or not.

As we all know, kids have a habit of putting things somewhere and losing them. When we were at home, I simply had her keep her money in her jar. If we went out to spend her money then I would make her put it in her pocket or keep it in her little pocketbook. I think the pocket is the best option as she would have a habit of putting her pocketbook down and leaving it. Also, the pocket will keep it secure so she wouldn’t drop it in the store or anywhere else. If she did lose her money, I would not replace it so that she would learn to keep up with her own money. If you replace any money they have lost, it defeats the whole purpose of teaching them the responsibility of keeping up with it themselves.

I know that all of this sounds quite easy to do, but it really isn’t because each child learns about money-skills in different ways and at different speeds. The key, like anything else you teach them, is time, practice and patience.

Additional Resources for you to learn from
FREE to SPEND helps your child embark on a journey of discovery. Cast as a “secret agent ” on a mission to capture and tame runaway resources, you will learn how properly handling money, even at your age, can secure for you a better life and future, help you enjoy more money, show you how to “use what you have ” to “get what you want, ” and teach you the valuable lesson of how to communicate with loved ones.
Kids Wealth is a company of educators, financial experts, designers, writers, artists and parents who are dedicated to creating the most effective, enjoyable and easy-to-use educational products that help teach children money management skills and help them build successful money habits.
Crown Financial Ministries  Do you ever wonder what the Bible says about money?  There are over 2,000 Scriptures about finances. Here are a few Scriptures, arranged by topic, for your reference.  Crown teaches you these.
Dave Ramsey Foundation a Personal Finance is the premier curriculum for teaching high school students about money. Educators appreciate the turn-key system’s adherence to national standards and benchmarks, while students experience interactive learning in Dave’s practical, down-to-earth style.
Money Savvy Generation Young children have no preconceived notions about what they can or cannot learn. They are open and willing to accept basic personal finance education and incorporate it into their daily lives. This is the missing link that Money Savvy Generation has worked to address with its unique set of products and services.  Here is how to teach money management basics to elementary school aged children

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