Archives for January 2011

Teaching Little Ones How to Handle Money

The following post is by contributor Christen Babb of Nurture Baby.

As the years change, so do our goals. In 2011, with the economy still on its way up, a common new year’s resolution is to budget better and spend wisely. We work hard to pinch every penny, but it’s just as important to impart our knowledge and experience (the good and the bad) onto the next generation.

As Dave Ramsey, a well known financial personality says, “Parents are not just responsible for providing food, clothing, and shelter for their kids. They are also responsible for teaching their kids about life—and life includes handling money.” If we don’t teach our children how to properly handle money, someone else – or some other crafty ad campaign – will.

A common way to to teach little ones the value of a dollar is to create a reward system based on a set of simple, kid-friendly responsibilities.

When to Start?

I believe it’s important for kids to start doing simple household chores before they receive a  reward – perhaps as early as 3 or 4 years old.  Tasks such as sorting and putting away silverware, feeding the pets, “folding”  the towels (don’t aim for perfection!) are fun, age-appropriate jobs for eager little helpers. It sets the tone that some jobs are not paid – they are simply responsibilities for being a part of the family. Kids who help around the home gain self-respect and take pride in a job well done. They learn early on that other rewards, such as allowance, are secondary benefits.

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