For The Parents
Teaching your kids the value of money.
Feb 3, 2020
For The Parents
Feb 3, 2020
Often, it’s not until kids get their license and want a car that they start to realise the importance of money. By then, they’ve already developed habits and attitudes around it that are hard to correct! If they had the opportunity to learn the value of money and respected it from a young age, they would be much better equipped to afford these milestone purchases when they reach them.
Learning the value of money early sets your children up for a financially independent future. As their parent, you play an instrumental role in teaching them the attitudes and behaviours that they will need, leading by example. You work hard for your paycheck, and the time and effort you put into earning it means you value it more than money that’s just handed to you – you can use this same framework to help your children learn the value of money. It will also help them understand and appreciate your role in the household finances.
The best way for your kids to learn the value of money is through putting time and effort into earning it, instead of expecting a deposit from the bank of Mum and Dad. They’ll quickly realise how hard they have to work for each dollar. Suddenly, the price of that new toy isn’t a vague concept; it’s two week’s worth of chores! And they might just decide they don’t need it after all. They will learn the difference between needs and wants as they choose how to spend their hard-earned money! Understanding the value of money, and just how much work they have to do to earn it, will help them avoid spending crazily on unnecessary things even as they start earning lots of money later.
Once they begin to understand the value of money more with their own income, you can expand the lesson to value the money others make. Gently remind them that you work hard for your money, just like they do, and that you have to spend it on things like power and food. Asking them to find ways to reduce costs, like turning out the lights when they leave a room or only taking as much cereal as they need, is a simple exercise that will help them understand the costs of things they’ve always taken for granted. In the present, it may help you save a little more of your hard-earned money, but it will also help to create behaviours that will ensure a more financially stable future for your kids.
Learning the value of money and how to respect it is an important lesson for your children to learn, and you can help them learn it before they need to know it, with just a few simple exercises! Earning their own money from a young age will help them become money-conscious adults that are well prepared for whatever life throws at them.
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