How to Teach Your Child About Money

From piggy banks and lemonade stands to saving for their first home, it’s important that children learn about being financially responsible from an early age. We want our children to understand how to be good stewards of their money. They should know that any money we have is not truly ours, and we should give back to God in response to His gifts to us. Here are some ideas to help you get started!Elementary AgeSave money using a clear jar so that your child can easily visualize his savings accumulate. Celebrate with him as the money grows! Making sure that you continually share how proud you are of him, you can demonstrate the cost of the new board game he wants by asking him to count out the cost from his savings jar. Then, set an example for him by responsibly using your credit card and reducing excessive spending.TweensExplain to your child that she needs to carefully consider purchasing decisions; for example, if she wants to purchase a new pair of shoes, she won’t have the money to go to the movies with friends on Friday night. Suggest that she wait a day or two before purchasing a new item, explaining that if she doesn’t miss it, it was likely a good choice not to buy it. Finally, this is the age where you can begin to educate children on tithing and charitable giving. Let her pick a charity that is meaningful to her which she can donate a percentage of her allowance to.TeenagersOpen a checking account for your teenager to deposit his savings so far. This will help familiarize him with banks and managing an account balance rather than just using a savings jar. Then, help him find a job outside of the home. Not only does this teach financial responsibility, but it will also help prepare him for working life as an adult. Finally, be open and honest with him about credit cards and debt. When he turns 18, credit card companies will send him all sorts of offers, and while it’s important that he build up good credit, he can fall victim to massive credit card debt if you don’t carefully prepare him.The Orlando Catholic school's blog page has helpful hints for parents to encourage their children to excel academically, spiritually, and socially. To learn more about private schools in Orlando, contact us at 407-246-4800.