Practical Parenting Ideas: Teaching Kids the Value of Money

Monday, June 30, 2014

Teaching Kids the Value of Money

When my kids are old enough to earn quarters for doing extra chores I figure they're old enough to learn about the value of money. By being helpful and saving up for things they want, they are beginning to learn the value of a hard days work. They can even start to sense the importance of living within their means and being content with what they have.
If kids learn to value money and spend it wisely when they're young, when they grow up they will be smarter about how they spend their money. They will find a sense of accomplishment in building a savings and being economically stable. There are many ways you can help instill a sense of the value of money in your kids.
  • Let your kids to do chores to earn money. For older kids you may want to have an allowance they get if they do all of their chores. Keep it simple, make a big deal about earning a dollar or even a quarter!
  • Have your kids save up their money for a toy, game, book or other item that they're really wanting. Then once they have saved up, take them to the store and have them hand their money to the cashier. They will get excited that they paid for it.
  • Show kids money and teach them how much each is worth. With older kids you may share information about how bank accounts work.
  • When they are old enough, take them to your local bank and help them set up their own bank account. Encourage them to deposit money often. Perhaps they are old enough to babysit for the neighbors or other types of jobs and can save most of that money in the bank. 
  • Get a bank for your child to put their money in. There are ones with one slot or others with different slots such as Spending, Saving, and Sharing.
  • Talk to your kids about careers and let them explore what they might want to be when they grow up. Tell them about what you do for work.
  • It's okay to say "No" sometimes when they just seem to want anything and everything from the toy store.
  • If you're planning to buy them something, give them options. Say they want a toy and flip flops and you tell them to choose one or the other.
  • It's okay to say how much things cost. My 3 1/2 year old is learning that everything has a price tag and he likes to ask, "How much money is this?" He is learning that $10 is less than $50 and that sort of thing.
  • Talk to them about how when the family earns money it pays for things such as a mortgage, food, clothing, etc. You don't need to talk specifics at a young age, just general ideas.
  • Teach kids, even at a young age, of the value of education and doing well in school so they can have a successful career as an adult.

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