Teach Your Child the Value of Money
March 12, 2009 by Jennifer Chait
Filed under children's activity
There are plenty of things you can do to instill a good value of money in your kids. Some ideas…
Give them some cash: Kids should have some cash. Using paper money to learn is far less effective than actual money that earns goods at a store. In my house, I give my son a little cash each week, and he can spend it or save it. I have fun money so he should too. I never pressure him about saving but over time he has realized that saving up will result in a bigger toy. You can also have your child earn some money (see below) but overall I think giving some allowance with no strings attached is smart.
Have them earn their own: I’m actually not a fan of paying for chores. I think kids should do chores because it’s part of what makes a home run smooth – I do them and don’t get paid. But I digress. I also know that kids have almost no way to earn money so I’m not above paying my own little a little something if he goes above and beyond the norm. For example, if he out of the blue cleans his whole bathroom. If kids have to earn their own money, some of the time, they may be more likely to consider each purchase more carefully.
Don’t steal back money back from your kids: Having kids pay for using bad language, hitting someone, or not doing a chore doesn’t really fit the crime, and it just makes money more confusing to kids. The only time money should be going in and out of your kid’s wallet is if they spend it or put it in the bank.
Discuss the bills: Some parents freak about offering info about the household bills to their kids, but kids can handle it. Not only can they handle it, but it’s a good lesson. My son knows that X amount of income is earmarked for rent, water, and food, while X amount is disposable. After he was old enough to grasp this, he quit asking for useless stuff so much and often he’ll say, “After we pay the electricity do we have enough for…?” Also, I wouldn’t be worried about stressing your kids out. Trust me, we’ve had slim months and my son knows it and never worries, he just knows we can’t buy extras so much – that’s reality and a good money lesson for kids.
How are your kids learning about the value of money?
[image via stock.xchng]
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