- Delayed Gratification. This lesson is best taught from one year of age forward. To begin, parents must learn to say "no." From almost the moment of birth, kids are in a "me, my, gimme" stage. Teaching them to wait for something they want is crucial.
- Simple Allocation. This lesson, taught from ages three to five, is more visual than mathematical and it's designed to help kids establish a routine with money. By now they are receiving monetary gifts from grandparents or other family members, and from the earliest age must learn to divide and distribute these resources.
- Personal Responsibility. The very young child who wants to "help" a parent fold clothes or rake leaves is heartwarming, and that behavior should be encouraged. But by ages five to eight, a child should be taught to do routine chores simply for being a member of the family. An allowance should be earned for doing chores that benefit the entire family and are not personal responsibilities.
- Earning and Spending Money. This is an extension of the earlier simple allocation lesson and necessary from ages eight to 12 because the child is able to earn money by doing a variety of tasks around the house. Post "jobs" on the refrigerator with the price you are willing to pay, but be willing to negotiate within reason. You'll be surprised how quickly a young "contractor" bids on the work.
- Work Experience. From ages 12 to 16, your child's ability to earn money around the house and in the neighborhood dramatically increases. Once a skill such as leaf raking is mastered, the child can then offer the service to neighbors to earn additional money. By age 16 your child will know the value of working for someone else and earning money outside the home. It's now only a short step to filling out applications at nearby restaurants and other businesses for part-time work.
Crown Offers Advice On The "M" Word: Five Essential Lessons To Teach Your Kids About Money
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