Helping Children Manage Money

You can help children learn to earn, spend, save or share money. Children learn to manage money through experience. Try including all family members in making decisions about money. An example of this may be to involve children in the decision to buy a television. How much does a TV cost? How much can we afford to pay for a TV? How long will it take to save for it? Is there something we must give up if we buy the television?

Did you know that children aged 5 or 6 can usually manage an allowance? Giving an allowance offers the opportunity for you to discuss saving and spending money with your children. By deciding together how much the allowance will be, what it is to be used for, and what chores are expected from the child, you can make a big difference in how children will handle money when they are older.

Never use money as a reward or punishment. Three hints to help children learn: patience, practice, and praise.

Source: The Better Living Series, #L-409, "Children and Money," The Ohio State University Extension, 8/93.

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