How to start teaching your children about finances:

How to start teaching your children about finances:
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 It’s never too early to start teaching your children the value of a dollar. Money is something that they are probably exposed to every day and will use every day in the near future. Building a good foundation for your children is vital to their success as adults, and what better topic than that of money. Children must begin to understand that the things they own have been acquired through work and dedication. As a parent, you may need some ideas on how to start this process. 

  1. Talk to them about your job, home, cars, and food.

 Your children may already know a lot more than you may think. It’s essential to explain to them what it is you do every day and why. This can lead to you telling them about how money works, what you can buy with money, and why it’s important. An excellent way to do this is to explain to them that you pay for their home, food, etc. Explain to them in a way that they can understand. Explain to them where you work, what it is you do, and why. This may be very hard for your children to understand, but eventually, they will be more and more exposed to the idea of jobs and money. 

2. Teach them how to budget and spend their money. 

A great way to start this process would be to give them a few dollars and help them go around the store and see what they can buy. This process will obviously be more effective in a dollar store, or in a discount section. That way, your child can practice their math but also see how money works in real-time. Many parents may give each child a certain amount of money after they’ve done a chore or task. This gets your child thinking about the value of work, getting paid, and whether or not to spend the money. 

3. Take them grocery shopping with you. 

 If your child is a little older, taking them grocery shopping may be more fun when you ask them to help you seek out sales and prices. Teaching your children to budget, especially when it comes to food, is very important. They may see that their favorite snack costs more money than they would have initially anticipated. This may help them know why they are limited to their snacking privileges. This tactic is also useful if you want them to see how much you spend on groceries and how fast money can go. Hopefully, this will show them that you work hard for your money and use a lot of it on the family. 

Money issues are always hot topics. Too many folks do not know how to budget, spend, or plan ahead. Teaching your child these basics at an early age can be very beneficial to their future. 

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Karla Dennis, Tax Expert & Business Strategist

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, the founder of consultancy firm Karla Dennis & Associates™, has saved her clients' thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

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