This article talks about the importance to parents to teach their children the value of money,money management and guiding them in spending, budgeting and saving money.
One example is to show kids the value of money at an early age by teaching them to bargain shop and collect coupons. Parents should make the importance of the sacrifices that go into planning the family budget and expenses.
Another example is to engage children in a good budget,credit and tax management practices. Children need to learn how to track their income and spending habits. Parents also need to show children the importance of budgeting of items they need instead of item they want is critical in money management.
Children should be encouraged to keep two piggy banks one for saving and another for spending. Children should also be encouraged to create a small budget to keep track of inflow of money and outflow to make sure the outflow isn't greater than the inflow of money.
Children should learn how bills are paid and how the families budget is managed. Parents should show children how money is deposited into a account and how money is subtracted from the account to pay for the bills,lights,gas,and necessities. Teach children about investing in a 401k or retirement plan or in stock.
Those plans are to help put back and save money for when needed in emergency or when you retire to be financial stable. Buying stock in a company also shows the concept of…