Teaching Children about Money
As early as 3 or 4 or once they can already read, children should start learning about about money. Teaching children how to save, handle and spend their money will give them the solid foundation in personal finances when they become adults.
Start by starting on piggy banks. Relatives and friends or even you can give money to your children. Teach them to put the money that was given to them directly to their piggy bank. When they want something such as a new bike or a toy, motivate them to save for that thing that they want. Aside from teaching them the value of saving, you are also teaching them to be patient.
Handling them money is also a good way to teach your kids practical Math skills such as addition and subtraction. When you child buys a candy, tell him the amount of the candy, and tell him if the money that you have is enough for the price of the candy.
When your child wants to buy something, don’t just give them money or buy that thing that they want. Teach them the value of working for the things that they want. You can tell them that if they have good grades, they can have the toy they want. You can ask them to help you with house chores in exchange for the toy. This will teach them to value money and their toys because they worked for them.
We don’t want to raise children who are big spenders and who have debts left and right. We want them to be responsible with the resources that they have. Starting them early will give them the foundation and the right attitude towards having money, saving and spending.