Page 75 - Book2E

CHAPTER 8
Teaching Children about Money and Budgeting
As parents, we typically resent the notion of someone else telling us how to raise our kids. But when it comes to teaching our kids how to manage money wisely, most of us need all the help we can get.
The fact is, many adults and teens don’t understand the most basic concepts about money. On the other hand, young people typically turn to their parents first for financial education and guidance. To help children learn money management skills, parents should first assess their own grasp of personal finance and gain the confidence to talk to their children about money matters.
Children need access to money
According to the Indiana Department of Financial Institutions, children and teenagers have more money to spend than previous generations and develop spending patterns at a younger age. Children’s attitudes about money are most influenced by their parents, the media, their peers, and their own successes and failures in spending money. Their money management skills will develop from the ideas, attitudes, and spending habits they learn at home, school, and in the marketplace. Those who learn good money management skills are more likely to become adults who can make sound financial decisions, avoid excessive debt, and manage income and expenses to reach their financial goals.
Whether or not you pay your children an allowance, all kids need experience with money at a young age. Many parents feel an allowance
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