Man, kids can be expensive. From diapers and formula to braces and broken arms, there’s always an expense. A lot of that is under the direction of you, Mom, as a newborn obviously doesn’t have the means to purchase their own diapers. However, as children grow up, teaching them the value of a dollar is quite important.
A good way of teaching them personal finance and money management when parenting, for instance, is to give them a weekly allowance. They have to earn their money through a few simple chores and therefore learn what it takes to earn a dime or dollar. Maybe they have something in mind that they wish to buy. Tell them that they can choose to use their hard earned money however they wish and that they have to save up to buy the item. Piggy banks are a great way to learn personal finance.
Eventually they’ll graduate up to their own checking or savings accounts. As they get older, maybe teach them the importance of saving money through low risk investments. If they get a little bit of money involved at a young age, they can have a larger nest egg when they’re older.
Also, when your child is a teenager, teach them about credit cards. They may go off on their own when they’re of age and know nothing about credit cards. They’re not necessarily a bad thing but about the age of 18, kids get applications shoved in their face and its easy to get deep in debt at an early age with credit card companies preying on young teenagers who are actually by this time, young adults.