An adult-child discussion may be far more effective than a parental lecture. Encourage rather than criticize and allow children to learn by their mistakes as well as successes. Show children how to make spending plans and keep accounts. Set a good example. Set reasonable limits and be consistent.
Children find comfort in rules that they understand and believe to be fair.
Include all family members in decision making and family money management activities. Establish specific guidelines for school-aged youth who are employed. The following chart will help you understand how children learn about money. This age has difficulty understanding concepts such as time and value. They may think a nickel is more valuable than a dime because of the size.