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Parents have been giving financial advice to their children for ages. "Neither a borrower nor a lender be," Polonius told his son Laertes in William Shakespeare's Hamlet. As with good hygiene and good manners, most parents strive to teach their children lessons on how to be good at handling money.
"If you can teach your child the difference between needs and wants, how to budget and how to save, your child will know more than many adults," according to Scott Reeves of Forbes. "But if you get it wrong, your child is likely to join the millions of Americans who rack up huge credit card debt and get stung each month by stiff interest payments."
In other words, no pressure.
The lives of children who understand money, its value and how to handle it will be far easier than those of children who don't.
Here are 10 tips for teaching your kids about money, focusing on saving and investing money, so they will grow up and use it responsibly.
1) Encourage entrepreneurial spirits
One of the best ways for kids to learn about money is for them to learn the true value of a dollar. They can best do that by earning money. Once they realize how hard they have to work in order to earn money, they will appreciate its value and not spend it recklessly.
"It also creates a sense of accomplishment," Reeves said.
Some common ways for kids to earn their own money include mowing lawns, setting up a lemonade stand and walking dogs. These skills can also help kids later in life by inspiring them to start their own businesses.
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Author: Trista Winnie
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