In a world where small plastic cards are handed over to pay for things and shopping can be done from home with the click of a mouse, children today can miss out on actually seeing money, let alone learning the value of it.
Teaching your children the value of money will help them throughout their lives. Here are some ideas to get you started:
Encourage savings and help your children set out some savings goals they can work towards.
Help them get an income, either through a paper round, casual work, paid chores or pocket money. Make sure they allocate a set amount of any money they earn to a savings account.
Provide an extra incentive to save, if you can, by offering a small bonus sum once they have reached their savings goal.
Help your children learn the difference between needs and wants, necessities and luxuries.
Allow them to make some of their own spending decisions. Whether these are good or bad choices, they will learn from them.
Lead by example. Encourage your children to shop around for the best deals, look for good quality products and wait for some items to go on sale.
Teach your child about interest. If they borrow money from you, charge them interest on their loan. You can also “borrow” money from them and show them it is better to receive interest.
Remember to lead by example and make sure you are responsible with money yourself. As with many life lessons, they will look to you for advice and guidance so it’s worth showing them a positive and responsible attitude towards money. Read