A Guide To Teaching Your Kids The Value Of Money

*Collaborative Post

It’s not a secret that kids don’t know anything about the value of money – that is until they learn it from you. If you don’t talk to them about money and make an effort to demonstrate how they should treat it, they will learn from you regardless. Badmouth money? Your kids will likely develop a negative relationship with it. Don’t spend money wisely? Your kids will see that money should be spent on impulse purchases and whims. If you want to make sure your kids grow up with a positive and sensible attitude towards money, read on. 

 

Explain How Money Actually Works

You’re going to need to explain how money actually works in a way that is suitable for their age range. Let them know that the cashpoint doesn’t actually spit out notes for free! 

You can tell them that it’s like a piggy bank and that the money you take out is gone until you get payment from work again. Make sure they understand that you can’t just buy whatever you want and that you need to think carefully about the money you spend. 

 

Reinforce Good Lessons In Your Kids

Reinforce good lessons in your kids by remaining consistent. Play games where they have a pretend store and you exchange small coins for items. Help them to build critical thinking skills by giving them pocket money and encouraging them to save for something that they want, rather than immediately spending the money on sweets every time.

Explain to them what they could have leftover if they bought a chocolate bar, and how much they could have if they left it alone for a few weeks. This will encourage them to think carefully before spending. You could even get them a see-through piggy bank so they can actually watch their money grow. 

Make sure they bring their money when you go shopping together, too. If they don’t have any left but they want ice cream, don’t give in or you defeat the purpose of trying to teach them good lessons. You could even encourage them to donate a small amount of their allowance to charity. 

 

Have Family Meetings And Discuss Money 

Have family meetings and discuss the value of money. Your kids don’t need to get too involved, but listening to you talk about what you are going to do in the coming months will help them to understand better. If you have a trip coming up, talk about how you’re going to start putting money away and how much you think you’ll need. If you’re buying a new car talk about monthly payments and how you’ll make this work for your budget. Just make sure you’re neutral – you shouldn’t grumble about paying bills in front of your kids. This can mean they develop limiting beliefs regarding money early on. 

 

Be A Great Role Model 

Practice what you preach! Kids are like sponges, so make sure you’re teaching your kids with your actions, too. Speak and spend wisely in order to teach them the value of money.

*This is a collaborative post. For further information please refer to my disclosure page.

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