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What Are the Best Tips for Money Management for Kids?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 13 November 2016
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There are many money management tips that can prove helpful for children. Among the best ideas for money management for kids, however, are those that involve saving money. For instance, children may benefit from learning the value of saving a significant portion of the money they earn from allowances, gifts, or even payments for odd jobs. Likewise, children might benefit from tips that recommend against impulse buys. Additionally, lessons that involve getting the most for one's money may prove helpful as well.

One of the best tips for money management for kids is to save a significant portion of the money one receives. When children receive money, whether from allowances, payments for extra chores, or even as gifts, many feel the urge to spend it on things they might not get otherwise. For example, a child may want to stock up on candy his parents are unlikely to buy for him or purchase a video game he might otherwise have to wait for a special occasion to receive. While there is nothing wrong with purchasing some of the things they desire, some of the best tips for kids recommend saving a significant percentage of the money they receive.

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Some tips for money management for kids involve impulse buying. Impulse buys occur when a person buys something not because he needs it or even because it is something he's been wanting for a long period of time, but because seeing the item stimulates a sudden desire for it. For example, a child who has a large collection of toys at home may just happen to pass a toy display in a department store and feel a strong urge to buy one, simply because he has money and can make that choice. Often, these types of buys lead to dissatisfaction later, however, when the purchaser realizes he spent money on something he didn't really want and now has less money to show for it.

Money management for kids may also focus on getting the most value for one's money. For instance, a child might benefit from considering his options when he wants to make a purchase. He may want to purchase an item of clothing that costs $80 US Dollars (USD), perhaps because of a designer label rather than the attractiveness or quality of the item. If he instead chooses to purchase a similar item for $40 USD, he would still have another $40 USD left over for another purchase or to add to his savings. For many people, purchasing the similar but not designer item might translate into the smarter option.

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