How to teach your children about personal finance

Holidays are a great time to appreciate what you have and give to others. It’s also a time that most adults struggle to budget when the expenses of Christmas presents and holiday travel pile on — becoming the perfect time to teach your children about budgeting.

Tyler Martin, founder and certified business coach at ThinkTyler, said that giving “your child a certain amount of money to spend on gifts for others, with the caveat that they sit down with you to create a budget. Your child will learn the value of making sensible financial decisions,” according to GoBankingRates.

In this process, your children will learn — through trial and error — what they can buy and what they will have to leave behind.

“Younger children may have an easier time grasping this notion if the money is given to them in cash. Assist them with dividing money into piles so they can see how their money will be spent,” said Martin.

As an incentive, they can always do chores around the house to earn more money, which will teach them how to value it.

Here are some tips to help you get started.

Offer tips at the right time

It’s important to remember that your child may not grasp intangible concepts if they are younger. If they are old enough to understand, find ways to involve them in planning, according to Rocket HQ. Parents.com said that children between the ages of 6 to 8 can be introduced to bank accounts and saving. It’s OK to go into detail though it might not be necessary…