The economy has suffered a major setback and the future looks pretty bleak. Mismanagement of money is definitely at the root of the current economic crisis and it’s important for parents to learn a lesson in all this an detach their kids early about finances, credit, and what it takes to survive. Living on credit cards and beyond one’s means certainly is not a method that is long lasting as is evidenced by today’s economic crisis. But, what can parents do to help their children learn how to handle money responsibly? One interesting way is to involve them in using coupons.

Responsibility

Within every family all individuals need to have responsibilities. One great job for the kids is to clip and organize coupons. At first, the kids might protest, but when they realize they have some control in picking out the coupons and what foods will eventually be purchased for the family then they may become more interested. What’s important is that kids learn early on that food is expensive and saving money is important. Clipping coupons and taking the time to actively seek out savings will teach your kids an important lesson and one they will take with them for years.

Savings

Now, take your kids shopping to the grocery store with you. Let them shop for the items on the grocery list and that you have coupons for. Allow them to see all the food being rung up and how much money it costs. Then, let them hand over the coupons and watch the total due decrease. Let them pay in cash, too, so they can see how much money is being spent and how much money is saved. If you use a debit card or credit card it does not work the same way.

Incentive

A fun way to help your kids really learn about the value of saving money is to give them a budget for the weekly groceries. Let them know what you are willing to spend and the items you must purchase. Then, allow your kids to find the best prices, coupons, and the like to help bring the total down. Give them the amount of money that they save you or a percentage of what they save. That way, your kids are motivated to save as much money as possible and are learning about finances!

Posted in Home Budget

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