Children should learn to save a significant portion of their money, avoid impulse buying, and get the most value for their money. These are the best money management tips for kids.
There are many money management tips that can be helpful for children. Among the best money management ideas for kids, however, are those that involve saving money. For example, children can benefit from learning the value of saving a significant portion of the money they earn from allowances, gifts, or even odd job pay. Similarly, children can benefit from tips that recommend against impulse buying. Also, lessons that involve making the most of money can also be helpful.
One of the best money management tips for children is to save a significant portion of the money one receives. When kids receive money, whether it’s from allowances, chore pay, or even as gifts, many feel the need to spend it on things they wouldn’t otherwise get. For example, a child may want to stock up on candy that her parents are unlikely to buy for him or buy a video game that would otherwise have to wait for a special occasion. While there’s nothing wrong with buying some of the things they want, some of the best advice for kids recommends saving a significant percentage of the money they receive.
Some money management tips for kids involve impulse buying. Impulse purchases occur when a person buys something not because they need it or even because it’s something they’ve been wanting for a long period of time, but because seeing the item stimulates a sudden desire for it. For example, a child who has a large toy collection at home may pass a toy display at a department store and feel a strong urge to buy one simply because she has money and can make that choice. Often these types of purchases lead to dissatisfaction later, however, when the buyer realizes that he spent money on something he didn’t really want and now has less money to show for it.
Money management for kids can also focus on getting the most value for money. For example, a child might benefit from considering her options when he wants to make a purchase. She may want to buy an item of clothing that costs $80 US dollars, perhaps because of a designer label rather than the appeal or quality of the item. If, instead, she chooses to buy a similar item for $40, she would still have another $40 left over for another purchase or to add to her savings. For many people, purchasing a similar but non-designer item might be the smarter choice.
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