5 Financial Lessons for Elementary-Aged Children

Teach Children Financial Wisdom Early

Financial responsibility is important to learn. Learning how to manage money is vital to ensure future prosperity. Unfortunately, many adults have yet to learn how to manage their money wisely, and the result is often maxed out credit cards, home foreclosures, and car repossessions. If you have a child, it is important to teach them how to manage their money responsibly. Here are five lessons that every parent should teach their elementary-aged child.

Saving Money

If your child is receiving any sort of allowance, it is important to begin to teach them to save money. Is there a game or a toy that they really want? Let them know that they can buy it, if they save for it. While many kids enjoy spending their money on small treats and other items that give immediate gratification, encourage your children to save at least a part of their money for larger items that they are interested in. For larger items, like bicycles or video games, you may want to chip in a percentage of the money that they save, to keep them from getting discouraged. Only do this, however, if your family can afford it.

Giving Money

Nobody wants their child to grow up to be selfish and unloving. One way to encourage kindness is to encourage giving. At this age, it really doesn't matter what they give to, or how much they give, as long as they are encouraged to give something. They could give to their church or Sunday school class, or they could find a cause that they really support and give to them. Does your child really like animals? Encourage them to give to the Humane Society. Maybe they want to help other kids like them that live in poorer parts of the world.

Taxes