Many parents wonder how they can teach their kids the value of money. Educating children about spending, saving and investing will enable them to use money wisely in future.

You can introduce the concept of money to children as soon as they learn to count. For instance, take your child along with you when you go shopping and tell him the value of different items in the store. You can teach the kids to spend smart by using discount coupons and gift vouchers. Show your child that he or she is responsible for their money. They should be taught how to handle and keep their money safe.

Encourage children to save money. You can give your kid a fixed allowance regularly and ask them to set aside a part as savings. Open a savings account for each of your children and ask your kids to manage it. It will give them sense of ownership and lot of responsibility. Setting up a piggy bank is a good method of saving money and keeping track of savings. When the piggy bank is filled with set number of dollars, move the money from piggy bank to child’s savings account. Now, let your child starts with the empty piggy bank all over again!

Wells Fargo Bank offers good resources for children to learn about money. Wells Fargo’s Hands on Banking page has instructional courses for kids, teens and young adults. You can open Goal savings account with your kids in Wells Fargo and transfer the money from your account to your child’s account whenever you want to pay for allowance or rewards for good scores in the school.

Cultivate good spending habits in children. Your children learn from you. Set an example in the way you spend. Show them how to evaluate ads and how to use credit cards wisely. Help children to distinguish between needs, wants and wishes. This will go a long way in encouraging frugal spending in future.

If your children are in their teens they can be made to do simple chores in exchange for money. In this way, they will learn about the time and effort it takes to make money. College going kids can be encouraged to take up part time jobs to supplement their allowance and meet their needs.

Money games are a great way of teaching kids how to make and manage money. There are several board and online games which serve the purpose.

• Monopoly:  A classic game which requires a player to buy and sell properties and collect rent.
• Game of Life: The player has to make decisions regarding their career and other aspects of life. The decisions will influence the player’s income and expenditure.
• Payday: This game teaches kids to manage an income, pay bills and meet unexpected expenditures.
• Money wise Kids: A great way to learn the art of budgeting.
• Money Bags: This game teaches kids to count coins. They can earn money for various activities.
• Easy Money: Similar to Monopoly. You can buy and sell properties to earn money.
• Counting Coins: Use this game to teach children how to count coins.
• Change Maker: This game teaches kids to determine total change on various purchases.

Websites like Minyanland are also helpful in teaching kids about money. Minyanland is a new innovation in teaching children the art of money management. It is a virtual community focused on financial education and economics. Minyanland has an economy which is very similar to that in the real world. Kids learn to earn, spend and invest money wisely. There is even a virtual bank at Minyanland where they can invest their savings. Parents can also set up accounts at Minyanland and link them to their children’s accounts so that their children’s allowances are payable at Minyanland! Combine this with wonderful graphics, sounds and internet safety and you get an excellent and fun tool to teach your kids about money management.

Teaching kids about money is fun as long as both you and your children enjoy it. The key is not to bore and confuse the kids with the details of stock market and banking system. Keep it simple, your kids will love it!

Related Link: Wells Fargo Resources for Kids