Does it seem like your kids are always asking you to buy them things? Surely, you can’t say yes every single time. When they protest, you tell them what your parents always said to you: “Money doesn’t grow on trees.” Too bad it doesn’t, but if it did we’d never learn the value of money. That’s why teaching your kids the value of money is an important lesson you shouldn’t skip. Here’s how.
- Give an allowance
Small children can take on little chores like putting away toys or putting laundry in the basket. The amount you give them doesn’t need to be big but by earning something for their efforts, they will become more responsible.
- Set up a piggy bank
Sure, it’s cute. But it’s also a great place for your child to put the money they’ve earned and learn how to save it.
- Bring them to visit a bank
When you have to run an errand at the bank, take your kids with you. Tell your child that the bank does and they’ll likely find it more exciting to save their money at the bank.
- Set up savings
Savings accounts make your money earn money just by keeping your money there. So open one up for your child. Once they’re bigger, you can have them deposit some of their earnings into it to grow their account further.
- Take them shopping with their earnings
When your child saves enough money, let them take a little of it to buy something. Help them see if they have enough money for the thing they want to buy. If not, you can encourage them to keep saving even more.
- Use cash for transactions as often as possible
Even when we’re on a budget, cards make us overspend. We think we’ll figure out a way to make it work and then the bills come in and things aren’t so easy. By using cash, it makes us stay within our budget and it will teach your child to do the same.
- Be a good saver example
If you always run through the drive-thru because it’s more convenient than making a sandwich with food you’ve got at home, your children will pick up this bad habit. When we spend money on the things we don’t need, it’s not a good example for our kids. There’s a difference between having a treat sometimes and daily habits. Teaching your child the difference will help them be better at finances in the future.