In a bid to teach children about finances a number of parents give them a monthly allowance. Does that mean that they learn responsibilty immediately? No. Having money is not enough. Your homeschool students need to understand how to use it with purpose and intention. Here are some tips to get them started on their financial literacy in an encouraging and supportive manner.
Have Them Help with Grocery Shopping
An essential life skill to have, it also serves the purpose of a financial planning lesson. They get a list and a budget, and have to ensure that they shop accordingly. As they go through this every week, they will be able to figure out where they can get the same quality produce at lower rates. Learn how to bag the items without damaging them, and also manage to include treats not on the list through the savings.
Paying for Their Extracurricular Activities
Once they can pick up small jobs to earn money, its a good idea to have them pay for the extracurricular activities that they want to persue. Dance classes, swimming lessons, musical instruments, tennis sessions, it can all be paid by the homeschool children using the money that they earn for themselves. They can pick up jobs like laundering, yard cleaning, part time assistants in stores, even working in food prep help at restaurants. You will have to find the opportunities for them to start with.
Savings and Charity Donations
Making money is one aspect of the cycle, the other is saving it. This can be for short term goals such as buying something that you can’t purchase with a single month’s salary. Or long term goals such as that car at 16 or eventual college fund. In addition it’s important to explain why they should also contribute to worthy charities. Understand their interests and find charitable organizations which they can feel good donating to.
Taxes
It’s an inevitable part of making money. Encourage them to understand how the taxation system works in your state or country. Teach them the different types of taxes that exist. Have them understand their fiscal responsibility to the government. Showing them practical examples of where all you pay taxes as an adult is almost mandatory.
