Children and Money Management

I hate to be the bearer of bad news but, if your children think that money grows on trees, it's your own fault. Oh sure, the media bombards us, and our children, with enticing commercials and ads with the "must-have" latest and greatest clothes, shoes, toys and gadgets. The question remains, Who is responsible for allowing little Johnny, Sasha or Emilio to have everything their little hearts desire? The parents. In this increasingly materialistic society in which we live, teaching our children an appropriate and healthy attitude towards money and money management will have long-lasting affects, long after they have grown and moved out. Children learn from their parents first and foremost, so how can you teach your children the value of the "almighty dollar", and instill in your children wise decisions in regards to earning, saving and managing money?

The Earlier The Better-parents should begin teaching their children about money, and where money comes from, as soon as their children can comprehend what a dollar is, and how it can be spent. Children often imagine that money just pops out of a machine like magic, by pushing a few buttons or, "Mommy, just write a check, the bank will give you the money". Very young children can begin understanding the value and importance of savings, with the help of a savings bank, or "Piggy Bank". Not only do they learn that saving money takes time, but they also learn that it takes a very short time to spend it all.