Five Fun Tips for Teaching Your Kids About Money

dollars in a pile with the word money in Scrabble letters

Your kids deserve to have a comprehensive education when it comes to money. If a child can be taught fiscal responsibility at a young age, those habits will transfer when they grow up. Therefore, you need to utilize these tips to help your child learn as much about money as possible.

1) Give Your Kids An Allowance

No child can turn down a paycheck. If your kid does chores around the house or wants to sell lemonade during the summer, give your child an allowance and start teaching him or her about how to budget the money that he or she receives.

2) Open A Savings And Checking Account

Opening a savings and checking account allows your kids to learn about accrued interest and why it is a good idea to save. You can go to http://www.checks-superstore.com/ to order checks with your kids’ favorite cartoon or television characters on them. The interest that accrues on the account can then be used to pay for a toy or something else that the child would enjoy.

3) Create An IRA For The Kids

Children need to learn why it is important to save for retirement. When your children see that just a few dollars can turn into hundreds of dollars through compounding interest, they will be eager to contribute to their IRA account. If you are financially savvy, you may be able to set up a self-directed account for your kids.

4) Let Your Kids Buy Stock In A Company

Your kids will need to learn how to purchase a stock or a bond when they are older. It is a good idea to let your kids invest in a company of their choosing when they are young. To teach your kids about different types of corporations and how taxes impact an investment decision, you can start a family company that your kids can invest in. To make things fun, you can use Disney checks in place of actual stocks.

5) Show Your Kids How To Create A Tax Return

Take the time to show your children basic tax forms such as a w-2, w-4 and the w-9. To make things interesting, you could have your children submit a w-4 to get their allowance and give them a w-2 at the end of the year showing how much they made.

Kids need to learn about money as soon as possible. As soon as your kids can talk and do chores to earn money, you should start teaching them fiscal lessons that they will keep with them for the rest of their lives.

Earnest Parenting: help for parents who want their kids to be wise with money.

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