Learning the value of money is one of the greatest lessons on earth. Read the article below on teaching kids the value of money.

Teaching Kids The Value Of Money

The joys and sorrows of this world can be summed up in one word - money. To a certain extent at least. It is the vehicle in which we drive through life but sometimes we get so lost in the drive that we forget where we are going. And most people ultimately go over a cliff. Recognizing money for what it is rather than what some people consider it to be is one of the lessons of life. Money can mean various things to various people; for some it is the ultimate goal, for most of the people it is a game of ‘catch-me-if-you-can’, while for some it is the goal that must be attained at any cost and some few, wise people consider it a trap. To learn the philosophy of life takes an entire lifetime as many broken and beaten down people will assure you. That is why it is very necessary that the value of money must be taught to children. It is safe that way as the habit develops and stays throughout the life. They must be made to understand the perils and necessity of money. For, a man who understands money is indeed a wise man. The most important lesson is that you can’t make money easy and to quote Kin Hubbard “The safest way to double your money is to fold it over once and put it in your pocket”. Once your kid understands this, they are safe. Read the article below on how to teach kids the value of money.
How To Teach Kids The Value Of Money
  • Introduce your children to money as soon as they are able to count and provide them all the information that they question.
  • Make them understand the difference between need, want, and wish. Once they are fully able to understand this then they will be able to spend money wisely.
  • Teach your children to set goals and achieve them by saving. It will ultimately teach them to be responsible for themselves. The goal can be a toy or any other such item.
  • As your kids grow older, you can teach them the concept of earning interest from savings. Show them how money accumulates when you save. You can encourage them by offering interest on the money they save.
  • Give allowances to your children in denominations that encourage them to save. So, instead of giving the complete amount it is better to give change from which they can save the small amounts.
  • Open a saving account for your children. Having their own bank account will encourage them to save. Also, do not stop them if they want to withdraw a little amount, as they will get discouraged about saving. Put up a savings plan and make your kids strictly follow it.
  • Teach them to keep a record of all their spending and savings. In this way, they can know how much they spend and save.
  • Teach them to live within their allowance by making a budget. If you are strict in your enforcement then the kids will learn how to live within their means.
  • Shopping trips are a good way to teach the kids the value of money. While shopping you can demonstrate to them the worth of various items and how to spend economically.
  • Allow them to make spending decisions and then show them how they can better upon it.
  • Teach them the dangers of borrowing by charging interest on the money you lend to them.
  • Regularly discuss simple family finances with your children.

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