Teach kids money management skills early

When it comes to kids spending your money, it is never a problem for them. But how do we teach our kids life skills when it comes to managing their money? When your kids become adults and have to manage their money, they will already have the skills.

Bill Dwight, who is the owner and creator of Famzoo.com , came on Smart Family to share his thoughts on kids and money management. Bill is also a father of 5 and puts into practice with his kids what he shared with us.

Bill said that he feels kids should first earn their own money. Regardless of how , he says, that is up to the parents to decide, whether it be through chores, allowance or maybe getting a babysitting job, either way Bill feels kids should earn their own money.

On top of earning, next comes the big one, money management. Kids should manage their own money, of course, with the parents' guidance. He says he does this in three parts: spending, saving, and giving. He says we as parents should guide our kids on how to spend, save and give. Sit down with your kids and come up with a plan. Use a piece of paper or a money management site to come up with a budget for each of the three aspects of money management.

When it comes to giving, Bill says he teaches this to his kids because he wants them to know how good it feels to give, instead of taking. He says let your kids decide how much they want to give and to what cause. Bill says when it comes to all five of his kids giving, that it is not an option but how and how much can be discussed.

Overall, kids need to learn how to take ownership of their money choices. Bill has created a very useful website for parent sand kids to learn how to manage their money, it is called Famzoo.com . The site will cost $30 per year per family but you can try it out for 4 months for free. If you go to the site just type in promocode: smartfamily