Teaching Your Children the Value of Money
Summary
– Step 1: Teach your child the value of money
– Step 2: Give pocket money
– Step 3: Introduce the concept of savings
All parents want to teach their children the value of money. The goal is for them to know that money is not only worth having but that every effort is worth paying for. To achieve this, making them understand what money is used for is vital. As a demonstration, we will make them manage their income and let them save.
1. Make the child understand what money is used for
Use concrete examples
Money is used to buy clothes, food and, toys, everything the child consumes. To demonstrate this, take your child shopping. Don’t hesitate to make him understand that this product is too expensive.
At what age?
There is no point in explaining what money is for before they are 4 or 5 years old, as the notion of exchange will appear around 6 years old. On the other hand, you can give them coins so that they learn to exchange them for goods or services.
For example, give a child a coin to buy ice cream. The child provides the cash to the shopkeeper, the shopkeeper gives the coin back to the child, and the child gives the coin back to the parent.
2. Give pocket money
Include the notion of merit
Giving children pocket money is essential and making them understand that it is not a gift. A good technique is giving children pocket money to spend some of their spending.
For example, parents stop buying candy and gadgets for children. It is up to them to use their allowance to treat themselves.
At what age?
You can start giving pocket money to a child from the age of 7. It has been observed that children do not use cash among themselves but prefer to exchange goods. Parents need to be vigilant to ensure that children have traded relatively.
3. Introduce the concept of savings
The old piggy bank
The piggy bank was around long before children’s savings books and was preferred to a bank account. The child can physically see the results of his or her savings efforts.
At what age?
Once a child has been given pocket money, he or she will start saving. Parents can encourage them to do so by buying them a savings account. We observe that around 11 children make plans with these savings.
I sincerely hope reading this post will help you teach your children the value of money and make your family save a lot of money. Do not forget to spread the word!
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