Too often we hear that parents are frustrated with children not knowing the value of money. Here are some easy ways to teach them:
Give your child an allowance that is based on their age and make the allowance conditional on completing basic chores like making their bed, keeping their room tidy, etc.
Don’t be afraid to explain to your children how much things cost and tell them in terms of their allowance, i.e. this item costs 10 weeks of allowance.
Encourage your child to save their own money to buy items they want. They see how much work is involved and learn to make financial choices and priorities.
The younger you start teaching your kids about money, the easier it will be as they grow. Open a bank account for your child and encourage them to actively participate in making deposits.
Collect loose change and let your child count and wrap coins for deposit into their account.
For older children, you can encourage them to work at part-time jobs – baby sitting, snow shoveling, lawn chores or paper routes. They learn responsibility and earn money for the things they want.
It’s important that we are able to teach our children to know the value of money and the pitfalls of credit/debt.