Teaching children to budget money

It is important to teach children budget and save: The big money habits from an early age.

But how can your child, household money to convince for a rainy day when a tantrum because he wants a toy?

Here are some tips to teach children budget and save:

First step: Let your child to explore the relationship between work and money.

I know that a couple with two children, 8 and 6 year old son both think the money "comes from" an ATM.

The son asks for a new game. The mother said it would cost too much money. The son replied: "Go easy on that machine and get more money."

These guys have never worked in his life of 6 years, so that they do not understand one day that money is the result of their efforts.

A child is motivated to save not the money that you have is directly to the job you are expanded in context.

Example: Create a table showing the duties and the amount of pay for each task lists. Sweep the floor will be worth 50 cents. Loading the dishwasher may be worth 75 cents. Can mow worth two dollars. (The problem, of course, must be age appropriate).

This proposal - to pay for the work - is actually somewhat controversial. Some families believe that children should be required to do tasks without additional compensation, so they can be to your home together contribute.

If this is your philosophy, then you could consider the child needed a standard of basic tasks - such as putting clear away toys, the table, the table after dinner - as part of their contribution to the household. Everything that are a child go "beyond" their normal duties rewarded with pay.

Step Two: Set Three glasses of money: saving, spending and sharing.

If your child asks for a toy, he knows he has to buy the toy with his own hard earned money.

Your child will soon find that not only earned $ 1.50 this week, but the toy he wants costs $ 12 How can you save? What should you do with your money in the meantime?

This is when the "Three pots" Set lesson in three pots for your child. One for saving money, spending money, and to share the other.

Whenever your child, helping his budget among the three pots of money is paid. Some of it immediately goes into the pot, the expenditure in the short term: a chocolate bar, an ice cream.

Part of the money goes into the pot of "savings". Your child should choose your savings goal - perhaps wants a PlayStation game or cell phone again. Whenever he gets paid, he can see his "balance" to grow.

The third glass should "share". Your child needs the thing which he shares to choose his money. Your child may decide that put the money in the collection basket in church, give it to a shelter, donate to a group that helps disabled veterans, or hold an acre of rainforest.

But where it is coming from the Three glasses procedure?

The method of the three pots - saving, spending and sharing - was popularized by the popular Muppet Elmo on Sesame Street television program for children.

While on Sesame Street, Elmo sees a ball of colored love - "Ball astonishing" the - But no need to buy $ 5. Elmo only $ 1, which means that all you can afford is a stink bomb.

So begins Elmo Sesame Street do housework. He earns $ 1, to repair an ice machine. He wins a $ 1 bottle recycling, and $ 1 more folding clothes.

. As Elmo wins, he tried to go at some point, some of the Muppets sing background:

"On Wednesday, I wanted to buy ice Elmo Elmo coveted But all was not lost -. No, at this day, except Elmo"

Finally, Elmo Saves $ 5 and goes back to the store to buy a wonderful ball. But on the way he meets a deranged cookie monster is angry because he order enough money to buy a cookie.

Action Cookie Monster Elmo with $ 1, and simply buy a $ 4 Fantastic ball rather incredible ball $ 5.