Becoming a single parent usually means the purse strings are tightened. That does not mean you cannot enjoy wonderful things in life but going from a two to one-income family does present some challenges. Unfortunately, children think mom and dad are made out of money. Smaller children have no concept of what money is or where it comes from, just that if they want something, they beg mom or dad for it.
According to some of the country’s leading child experts, a child should be taught the value of money as early as age three. In fact, these experts say that the sooner these values are instilled in a child, the quicker the lesson will be learned, and the better the information will stay with the child into adulthood.
To start teaching your child about money and that the budget has changed is to be responsible yourself. Children pay attention, more than you think so the better you shop for bargains the more the child will learn. Of course, you want to treat money with respect. Show your child that clipping coupons and shopping on the clearance aisle is perfectly acceptable.
A great way to start teaching your child about money and responsibility is to spend time playing bank or store with your child. For money, use pennies or even play money. You could set up a small general store with various items from the home. Then, walk your child through the process of shopping, looking for bargains, and paying for the item.
It is also important to pay your child a weekly allowance, even a small child. An excellent way to base pay is by the chores done, as well as the age of the child. For instance, a small child might be given $.25 a week. As you hand him/her the quarter, let the child place it in a piggy bank. Then when you go to the store, have your child take out $1 or $2 to buy something. Now, if the child is older, you might pay anywhere between $5 and $10 a week, again depending on his or her level of responsibility.
Another great way of teaching your child about the value of money is that if he/she needs to earn money to go to camp, buy a new bike, or something special, offer the child extra chores as a means of “earning” the money. In addition to teaching your child about handling money, you are also teaching him/her to be independent and confident. You can even teach your child how to fill out bank deposit and withdrawal slips, talk to your child about the potential dangers of credit cards, and help him/her set realistic goals.