How to Teach Your Kids to be Frugal
Posted on Saturday, December 21st, 2019 at 1:09 am
Very few people intrinsically understand how to be frugal with their money. Parents are going to have to teach those skills to their children. Doing so will help them to live frugally when they are older.
Making Choices with Money
Help your children understand how much things cost. One way to do this is to have them use their allowance, or the money their received on a gift card, to buy the items they want. The next time your child asks for something they want at a toy store, take the opportunity to talk about making choices with money.
Show your child how much the item costs. Clarify how much money the child has in their pocket or on their gift card. This can help young children understand if they can afford to buy it right now. If they want to buy two toys, but only have enough money to buy one, they must make a choice.
Have Your Kids Contribute
Older kids tend to want things that are expensive. A teenager who has a driver’s license can help pay for their own car insurance. Teens who desire to have the latest, newest, smartphone can pay for the data service portion of the bill.
Affording what they want will typically require the teenager to find employment. Parents can help their teenager to start keeping track of the amount of money they earn, and to make a budget. This skill will set them up to make informed, and frugal, choices about money after they leave for college.
Teach the Basics about Money
Tweens and teens are ready to learn about the differences between a credit card and a debit card. It is an important lesson to learn before they are old enough to apply for them. Make sure they know the difference between a savings account and a checking account.