Raising kids is a major responsibility. As a parent, you want your children to grow into independent and responsible adults, and part of that involves teaching them financial lessons. Sometimes, however, that's easier said than done. The following six tips can help you teach your kids financial lessons that will pay dividends for years to come.
1. Teach Money Lessons Early
Get kids comfortable with basic financial concepts by explaining what money is and how it works. One way to do this with young kids might be to give them money to make small purchases (such as a candy bar) themselves. If your children are a bit older, an allowance can teach them how to make their own money decisions. While you may require that your kids save a certain portion of their money or give something to charity, let them decide how to spend the rest of it. When you allow kids to decide how to spend their money, they'll start to understand how much different items cost and learn how to prioritize their various wants (e.g., "I can buy a small toy today, or I can save my money to buy a bigger toy in the future.")