Money 101 During the Tween Years

Every child has to learn financial responsibility, and the largest amount of learning takes place between the ages of eight and 12. These are the so-called “tween” years. They are also the years when a child first comes under peer pressure and starts to desire more expensive toys and electronic gadgets.

It can be difficult in today’s society for us to teach our kid’s how to manage money. The pressure to spend, spend, spend is always there. In addition, we as parents experience an enormous amount of pressure to buy our kids the things their friends have. How do we balance the two messages?

They Learn From Us
Like it or not, kids get their first lessons in money management by watching us. If we are spendthrifts, they will get the message that it’s okay to spend lots of money. If we are savers, they will learn to save as well. Above all, don’t try to teach them rules you don’t follow yourself.

The Allowance Question
Some parents give believe in giving kids an allowance with no strings attached, while others make their children earn the allowance by doing chores. Some parents don’t give an allowance for regular chores, but allow their kids to earn money by doing extra chores. Experts have differing opinions as to which method works best, but all of them can produce good results.

Regardless of which method you choose, your children have to receive money somehow. If they never get money they will never learn how to manage it. Talk to them about money management. Explain budgets and discuss the importance of savings.

Don’t just buy them toys whenever they ask for it. Kids need to buy their own toys, for the most part; it will teach them the value of money and how to spend it. Make them purchase toys using their allowance and save the big-ticket presents from you for birthdays and holidays.

Teach Them to Save
Saving is an integral part of money management. Give your kids a piggy bank or open a savings account for them. Explain how important it is to save for expensive items and college tuition.

One method that often works is to make kids buy even expensive toys with their own money. If your son wants a toy that costs $30 but his allowance is only $10 a week, he will be forced to save money if he really wants the toy.

Another method works by rewarding children when they reach savings goals. A full piggy bank or a certain amount in the savings account might trigger a trip to the toy store or an extra special dessert.

You should also teach kids the importance of charity. Some parents make their kids set aside a certain portion of their weekly allowance for charity; others force a donation once a year and some merely encourage their children to donate.

There are many different ways you can go about teaching your children how to manage money, but the most important thing is for you to begin as early as possible.

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