One of the most important life lessons kids can learn is how money works, and the advantages of managing money correctly. Obviously, it is great to have money, and it is sad not to have any, but there are several other benefits to being responsible with money. They can learn responsibility, self-control and the importance of saving. Furthermore, it is never too late or too early to start. Kids love a “Piggy Bank”. 

Teach them to budget their money. Giving your children an allowance can be a fantastic way to teach them how to manage money. For the younger children, you could provide money every week, every two weeks for preteens, and once a month for teenagers. Your kids will learn the importance of budgeting their money if you gradually spread out the timing. Show them how to make a budget, and you can help your kids come up with a strategy on how to spend their allowance. They may create a strong financial foundation and good habits with careful planning and budgeting.  They may spend it all at once, and then go hungry for the rest of the month. They will learn quickly how to budget for themselves. 

Educate children on the importance of saving. It makes sense that the youngest children would have money problems. They must learn the advantages of delayed gratification. If there is a toy or game they want, advise them to save up for a few weeks instead of using their allowance on ice cream or something quick gratification.  If they can save their IPON CHALLENGE they can buy exactly what they want for Christmas, and they will learn valuable savings techniques throughout the year! 

Establish learning opportunities. Avoid giving your kids more money before their next allowance is due if they use up all of their allowances at once. Important lessons can be learned through negative results. Your children will start making wiser decisions if you discuss how to improve next time. Encourage your children to do their research and to keep learning. Good habits they develop now may be beneficial to them for the rest of their lives.

Saving can be fun and rewarding.  Saving up for something expensive means that your children will value it more and respect it more. If they have had to wait for something that they want, they will enjoy it even more when they get it. 

And with any money left over, put it in a bank, and save for something even bigger!