Kids and Money. Tips for Kids and Money - Continued

If you are providing a credit card to a child to shop with, make sure they have a limit. Putting limits on how much they can use, and within what time frame, you are going to help them learn about budgeting their money.

For example, they have $100 per month to purchase clothes, books, notebooks, shoes, and extra food that they may be in need of when they are away at school. Because they have the cafeteria for their main food supply, and they took a stash of everything else they could possibly need with them when they went to college, a limit is a good thing, and will help them budget what they need and want. 

To ensure that your small children grow to be financially fit and they understand about money in their life, use an allowance as a method of teaching children about money. When a child is small, a dollar a week is really plenty. They can purchase candy, a small toy, but the child will also realize that if they save that dollar, next week they can get something bigger and better. 

It can be difficult for a child to learn about money if they always have money. Limiting the amount of funds that your child has access to, and limiting how much ‘extra’ goodies you are purchasing for them every time they ask for it is going to help in your teaching about the value of money.