Indeed, it is a saying many of us would like to strongly impart on our children. Unfortunately, many of us don’t know where to start when it comes to teaching our kids the value of money.
Thankfully, there are a number of simple strategies that we can all use to teach our children the value of money, including:
1. Use the ATM
The next time you are at an ATM, explain to your child that it is not a money-printing machine, but is where your money is kept until you need it. Tell your child that when you take out money from the ATM, there is less in your account.
2. Go shopping
When you go shopping, you can explain to your children that you use your money to buy items. Different products have different prices, with some being more expensive or cheaper than others. You can tell your child that it is important to look around at different shops and look for items that boast the best value. If you are doing the grocery shopping, make a game out of it. Have your child add up the value of every item purchased so that they can see how much money is spent on food and household items on a regular basis.
3. Let your child earn money for odd jobs
You can teach your child what it means to earn money by providing financial incentives for chores. It is important that you work out and explain to your child which chores will and won’t be paid. For example, making the bed and tidying their room might be tasks that should be done without any expectation of a reward. However, chores like vacuuming the home, or taking in the laundry, can be tasks that you provide money for. Ensure that jobs are completed before a child is paid so they develop good work ethics.
4. Set up a bank account
You will need to consider the best way for your child to put away their money and it will come down to personal preference and maturity. If you have a primary school aged child, you may opt for a bank account so they can learn the basics of saving and earning interest. For younger children, a piggy bank might be best as it’s tangible and they can count their money. Both options will allow you to talk about saving and using money.
There are no hard and fast rules when it comes to teaching your kids the value of money, it will all come down to what you feel comfortable doing.
Remember to keep it fun and rewarding for both you and your child.