How to financially educate your children

Educating your children on the value of money is critical. As we all know, money doesn’t grow on trees and it is important to teach your children this.

Educating your children on the value of money is critical. As we all know, money doesn't grow on trees and it is important to teach your children this.

So what can you do to ensure your children are financially savvy and make good monetary decisions?

One of the best ways to show your children the value of a dollar is to start to education process as early on as possible.

Starting them on weekly chores from a very early age is always a good idea. Emptying the bins once a week will not only give your child a sense of purpose, but it will help them to realise the value of a dollar.

Part-time jobs

In addition to encouraging weekly and/or daily household chores, it is good to encourage your child into part-time work. Working a part time job will provide your child with a sense of independence and leave them feeling more financially and personally fulfilled.

Of course, part-time work and regular household chores that help your children earn an allowance aren't the only things you can/should do to teach your children the value of money.

Financial Apps

Technology is a great way to introduce the concept of spending and finances to your children. A financial based app could potentially be a fun and engaging way for children to learn the value of money.

Financial Apps such as Toshl Finance, Left to Spend and Manilla allow your children to keep track of their spending and help them to understand how much they spend per month on items such as food, clothes and transport.

These apps are a fun yet simple method to help your child understand how much money he/she might spend per month and how they may be able to save more money by removing a few luxury items from their weekly shopping list.

Task allocation

Finally, providing your children with fun and engaging tasks may be a great way for you to teach them the value of money.

For example, next time you go to do the weekly grocery shop, take your child/children with you and give them a dollar amount that you are willing to spend.

As you go through each isle and put items into your trolley, get your child to add up the cost of each item and ensure that your entire shop is done within your budget. Not only will this improve their simple arithmetic abilities, but it will show them how quickly costs can add up and how easily it is to spend money.

By understanding the value of money, your children will not only be more inclined to be more responsible with their own money, but they will be less likely to want to spend all of yours.