Money Principles You Should Teach Your Kids Early

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Some parents find themselves asking when is the best time to teach their children the principles behind managing money. While Joseph Cianciotto believes that the answer differs from family to family, it is never too early to teach young ones essential financial principles. Discussed in this article are some simple principles you can impart to them.

The Purpose of Money

Even at an early age, children should appreciate the importance of earning money—and that is to primarily have the means to acquire products and services. Explain to them that it is not necessarily the money you want but the freedom, opportunities, better choices, and peace of mind for which it can be exchanged. You can demystify the meaning of money to them by involving them in various financial processes, such as when paying the bill at a restaurant or café.

Saving for a Rainy Day

So many individuals and families fall into the debt trap nowadays because of mismanagement of money, says Joseph Cianciotto. At a young age, people should understand how vital it is to practice good spending behavior and save up for emergencies. In addition, parents should teach their children that money is finite and that not all the money their family earns should be spent. Instead, a significant portion should be set aside for future use.

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Earning Money through Good Work Ethic

Your children have to learn the value of hard work and that it is only by developing a strong work ethic do they get to earn money. One way of teaching them about this principle is to have them work for it through household chores when they want you to buy something for them.

Giving to the Less Fortunate

By learning to give to the needy, children could become less selfish and more empathetic toward other people as they grow. In addition, they also get to learn that not everyone is as financially fortunate as they are.

Joseph Cianciotto has been working in the digital space for over two decades. He resides in Long Island, New York, with his wife and two daughters. Learn more about him here.