As soon as they can count, start introducing your kids to money. Start by letting them see and feel all the various notes and coins. And, as they get older, start raising their financial awareness step by step. Explain to them the concepts behind money through everyday activities, and get them into saving and spending money by giving them pocket change. This way, your child will get to know the basic clockwork of the finance world, which will also affect their development. And, ultimately, you will have raised a smart individual, who knows how to handle money responsibly.
Include your children in your daily financial activity. Be it a trip to the ATM or the bank, you will want to teach your children how money is obtained. They consider that invisible money, so explain how they don’t hand out money just like that. Talk shop, and explain how money is the reward for all the hard work and perseverance you put into your work. They will appreciate you and your job more, and will get to know how the world functions.
Give Them a Run for Their Money
Start giving your kids an allowance. There is no better way of teaching kids the value of money than by letting them taste it for themselves. Kids will come to realize how everything costs money, and if you want to get something you have to earn it. Furthermore, you can get them to do chores. They will help around the house, and learn the value of an honest day’s work. More importantly, this will help build their character, make them more self-reliant, enterprising, and hard working.
Save up for a Rainy Day
You should teach your kids to save money. A notebook can be a perfect way to store receipts, and manage their budget. This will allow them to always stay on top of their costs. And, for storing all that money, provide your kids with a piggy bank. They may not save up most of their allowance there, but it is certainly great to teach them the value that spare change has in the long run. When your kids get old enough, you can open up their first savings account. You can also use cool math games to teach them about interest rates and how it affects their savings. They will feel more grown up, and get a boost to their self-confidence at the same time.
Don’t Spend It All at Once
Teach your children to spend their money wisely. Let them make a wish list and set their priorities. They will get a sense of what they want, and have a goal set. Incorporate the concept of waiting it out. Fun math games will let them calculate how long it will take, and they will stay focused. This will ensure that they never spend it all in one place, and not as soon as they receive it. And, with important items always on their mind, they will learn to never waste money. Also, with all the effort they put into reaching their goal, they will appreciate the things they buy that much more.
The Right Price
Ask your children to help you with the shopping. You can teach them how to make a proper shopping list, and how to find the best buy. They will learn how brands affect price, and how they can save money by going for the alternative. Also, they will get a sense of when to consider quality over price, and how quantity is sometimes the cheaper way to shop. Moreover, a supermarket is a great place to add a bit of skepticism to your children about brands, ads, and supermarket tricks. Explain the goals of the supermarket and the product manufacturers, and how it’s not the customer they always have on their mind.
In the end, it is important to remember that kids start out with no concept of money. And, even though we all wish it could stay that way, the world doesn’t work like that. However, teaching your children early on will prepare them for the world ahead. By introducing children to their own money, and including them in everyday activities, they will become smart financially savvy individuals with a healthy attitude towards money.
Tracey Clayton is a full time mom of three girls. Her motto is: “Live the life you love, love the life you live.” Find her on Facebook.