Is it Important to Teach your Kids the Value of Money?

Financial literacy for kids is as important as it is for adults. Our childhood is the foundation of that structure we are going to create in our adulthood. What kind of person we become when we grow up is all dependent on our upbringing and education. The important aspect of this development is not just the literacy, but it is being able to use that knowledge we acquire to construct something better for the world.

Today’s trend associated expensive stuff with better product and satisfaction. Why is a four year old boy wearing an expensive USPA shirt, whilst the same could have been purchased at much lower cost? At this young stage, your child is naive about fiscal responsibilities, it is your duty to teach them Value of Money. On another level, are you contributing to his irregular attitude towards money?

Reach below on a few measures which you can incorporate in enlightening your child about the value of money.

1.Provide pocket money: Pocket money is a child’s personal store of money which can be spent at his will to buy anything. Now your child may spend all his money on ice-cream, and then he may want to buy a candy, so he will ask you for money. Buy the candy, but make sure your kid learns the lesson as well. This usually works as a stepping stone to understand how to manage needs within the given budget and some smarties may even manage to squeeze out savings from it! As your kid becomes used to the idea of pocket money, you can challenge him to meet the savings goal of each month. Start with let’s say 5% of the pocket money and gradually increasing it.

2.Talk About Value Of Money : It will be your duty as a parent to teach your children about financial literacy. Talk to your children about the value of money. It will be hard for them to understand the value of money at once but if you engage them in the talks from time to time, they will gradually learn it. You can begin with giving them information about the currency, the coins, and their value and later you can get them to know about how important each is. You should engage your child in various activities that teach them about money like you can make them play games which have money involved in it.

3. Make Them Wait: You can start teaching your kids the value of money at an age as young as 2 years. When your kid is young, their life revolves around toys and they are dependent on you. So, you should teach them to learn to wait if they want to have a toy. Teach your kid that they will have to wait until you have the money to buy that toy they want. When the kids learn that it is taking time to buy their favorite toy, they will understand that buying them is not easy and hence they will know that earning money is not easy and money is precious.

4.Organize finance-related meetings: In these meetings, family members can discuss each of theirs saving. Do appreciate your child’s attempt at saving and encourage him. It would be better to delay the concept of digital banking to the kids, to avoid them trotting up to you for an easy bank transfer to satisfy their needs.By doing this your kids will understand the value of money.

5.Visit the bank: Taking your child to the bank is worth more than just a free lollipop. Watching bank transactions helps kids understand what cash actually is. Let your child be involved as much as possible. Even preschoolers can hand a check to the teller.

To know more ways of How to Teach your Teenager the Value of Money?