Teach Your Child Amount Money by Limiting their Access to It

It's Day #3 on how to teach your kids what they need to know about being responsible managers of their money. No matter how wealthy or poor your family is, the only way to teach your children how to budget and manage money the right way is by limiting how much money you give to them. This is not an encouragement to let your child suffer. It's fine to give your child an allowance in exchange for doing household chores or completing tasks, but make sure that the payment fits the duties.

This helps children to learn how to save and spend their money according to how much they have. If the latest video game has hit stores and your son is saving up his allowance to buy it, then he knows he has to forgo buying a shirt he wants and hitting Starbucks everyday with his friends after school for an iced latte. Otherwise, he won't have enough money to buy the game.

Providing an allowance to college-age children is OK too, but you'll better prepare them for adulthood by keeping this amount within meager means as well. When they hit the real world, they are going to have to start at an entry-level job, probably not making a ton of money. They need to learn how to live within their means and by not overindulging them, you're preparing them for their financial future.