As with other parts of life, moderation is a reasonable goal for parents when helping kids understand peer pressure. It's also helpful for parents to talk to their kids about how peer pressure influences their financial decisions and the consequences of those decisions. Instill money management skills . Sometimes it's easier to give children money every time they ask for it rather than help them develop money management skills. But shelling out bucks on demand robs children of important early experiences with money.
Parents can set guidelines for how much children save, spend and donate to charitable organizations.
It's important to make money management enjoyable for kids by helping them set a savings goal, such as buying a toy, or by matching what they save and share. Share with those in need . Charitable giving is worthwhile for children because it teaches the value of generosity and helps kids appreciate what they have. Children are more excited about sharing their money when they get to choose the cause they want to support. Parents of younger children can help research potential recipients for their donations.