Children tend to think that money grows on trees. Most children can’t walk through a shop without asking if they can have something. A simple ‘no’ may result in a meltdown if you have an infant in the family. It’s all part and parcel of parenting, but so is teaching your child about money. There will come a day when your children will have to know that you work hard to give them what they have and that the value of money is important. So, how do you teach a child about money?
Let Them Handle It
As your child gets old enough to do sums, let them handle money. Use the money to work on their mathematics skills at home. You’ll be surprised how a jar full of pennies can occupy a child. You may also want to let them calculate what they spend when you’re out shopping. For instance, if your child has birthday money to spend, ask them to stay within their limit by adding up the cost of their items. You can also ask them to pay at the till and wait for any change.
Give Them a Goal
If there’s a particular toy your child wants to buy, ask them to save for it themselves. As parents its an instinct to provide your child with their needs and wants, but it’s a valuable life lesson. Offer to give your child pocket money in exchange for good behaviour, completed homework and completed chores. Agree on an amount per week and let your child work out how long it will take him/her to save for what they want.
Explain Bills
Unless you explain it, your child may not realise there’s such a thing as an electricity bill. Children have a habit of leaving lights on, wasting water and leaving the TV on when no-ones watching it. If you explain that every time they put a light on it costs money, they may think twice about doing it. You can also save money by switching energy providers. You can compare energy providers at Selectra energy comparison specialists.
Teenage Spending
As your children get older, their wants get more expensive. When your children turn sixteen, encourage them to get their first job and save for the things they want. That may be their first car which could be the most money they’ve ever spent. Teach them how to budget their money so they have money left over to save and put towards a reliable car. Here are some of the best new cars for first time drivers.
Be Open
Remember the old chestnut, ‘not while you’re living under my roof’? Past generations didn’t tend to explain why they had to say no. If you haven’t got the money to buy something your child wants, tell them why. Explain that your money has to go towards higher priorities. They won’t always understand but giving them a reason is better than telling them that you know best. They’ll thank you for being open and honest in the long run.
[…] savings, and explaining the difference between good and bad debts are just some of the ways you can teach children about money. However, to make it a little more engaging for young children, you can use games to make finances […]