Teaching Kids To Make Money

    Published: 06-16-2009
    Views: 14,196
    Financial planning professional and member of the Financial Planning Association®, Marguerita Cheng, CFP®, CRPC, talks about some ways for children to earn money around the house or neighborhood.

    Marquerita Cheng: Hi! My name is Marquerita Cheng, and I am a member of Financial Planning Association. I am here to talk about teaching your kids good money habits. If you want your kids to handle money effectively as adults, give them hands-on practice as kids. Allow them to earn money, manage it and learn from experiences. Let your kids benefit from small mistakes now, so they can learn how to avoid much larger ones later. One way to have your children earn money is through allowances in chores. Deciding whether to pay children an allowance is a family decision, but it's one way to give kids some money to manage. Try to match allowance amounts to expenses you expect your children to spend, so that they learn their spending is not unlimited. Pay the allowance regularly, such as once a week and help your kids set up a system for handling their cash. Decide if you want to tie the allowance to household chores, or of chores unexpected parts of family life and done without pay. Some parents do not give an allowance at all, but instead pay their kids for jobs around the house, so that they learn money must be earned. A job is another great opportunity to educate your teen on a variety of life lessons. How to look for a job, prepare for an interview, get along with co-workers, start a small business, use a check in account and more. Your teenager will probably make some mistakes along the way, but that's to be expected. Let them learn from their mistakes, but be ready to coach and encourage them. These are just a couple of ways that your children can earn money.