Money Lessons to Teach Pre Teens

Money is an essential part of day-to-day life and the pre-teen phase is an ideal time to start teaching your child money lessons that they can put into practice throughout the rest of their lives. During the transition years between being a child and a teenager, they will normally want to have more independence and responsibility. Being able to cope with different aspects of money is an important part of this.

Here is an overview of some the vital money lessons that a parent should teach a pre-teen:

Earning money

Money has a value. It has to be earned. Pre-teens are too young to earn money in the workplace but they can earn money in different ways. The source of money for most pre-teens is from their parents. However, it is irresponsible to just keep funding all the items that they want to purchase or the things that they want to do with their friends, regardless of their behaviour and their contribution to the family.  

This teaches them that money is right and that it doesn’t matter what they do or don’t do. Instead, teach them that the good things that they do are appreciated and will be rewarded. They can be given money for continued good behaviour or by helping out with small household chores. This does not mean that the child has to constantly be doing housework like a child slave. Simple things like keeping their bedroom tidy or helping to set the table for dinner are all small contributions that they can make. This will also teach them other values such as teamwork and helping others in the family. 

Saving money

The natural instinct for most pre-teens is to want to spend every last cent of their money as soon as they are given it. It is important to teach them that if they save money, that this will help them to buy bigger and more exciting things at a later date, rather than spending irresponsibly on things that won’t last, such as candy. This will be an important lesson for later in life, as saving money is essential to ensure that costs of unexpected bills are covered or to save for larger purchases, such as cars, without having to take out a loan which would incur more costs.   

Budgeting and planning ahead

Budgeting is an essential skill that your pre-teen will need in their adult life in order to pay their bills and buy any extras. It is important to start now in teaching them these skills. There may be occasions when there are several things that your pre-teen would like to buy or do. You need to help them take a look at the money they have available, decide what the things are that they want the most and decide how they can save for the things that they can’t yet afford.  

Self control and restraint

This can be a difficult value to teach but is important. It is normal for a pre-teen to spend every last cent they have on the things that they want. Your child needs to learn that they cannot always have everything that they want immediately. This is where they need to put the previous skills that you have taught them into play; by earning extra money through helping, saving up until they have enough and budgeting for the things that they would like to buy.