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Children And How To Manage Money

Everyone knows having kids can be one of the most amazing, daring, enjoyable and challenging things any person will ever do. Most people also know that kids are incredibly expensive. With the cost of diapers, summer camp, baseball, dance class, clothing, school supplies and college (just to name a couple things), your standard of living will change. Below are a several ways to help you learn about your children and how to manage money.

Teach Them About Money

The younger your kids know about how important money is the sooner the both of you will be in a better financial position. It's hard for children to understand that cash actually doesn't grow on trees. This is one lessen that you as a parent must instill on your child as early as possible. You can play or make up games that teach them basic money concepts as well as reward their hard work for cutting the grass or raking the lawn.

Child See, Child Do

It's amazing how quickly children absorb everything that happens around them. If your little one sees that you spend money like it's going out of style they will probably do the same as they grow up. You probably see that they mimic much of what you do. You need to become increasingly aware of how to manage money when they are watching.
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Give a Little, Help a Lot

When your child grows up and becomes a young adult you must understand that five bucks a week for allowance probably won't be enough for them. The same work they used to do with the lawn years ago may be worth 4 or 5 times as much and you should really pay them according to their age. Chances are your kid is also interested in finding their 1st job and this is the perfect time to teach more about budgeting. You can insist that they are allowed to spend 25% of their pay each week and the rest must go into an education fund. If you are able to afford it, tell them that you will contribute one dollar for each one they do. You could also throw in incentives like an extra dollar for every mark above 80% or 90%.

Every situation is different but the more you teach your importance about how to manage money the more likely you will give them the tools to succeed with their own financial future. If you want more awesome information on investing for the future, check out my blog and receive the free E-Book, free budget spreadsheet, free calculators and links to various tools. We also have a few leaked videos to help with your finances.

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