How To Teach Young Children Value Money
I have 3 children age 20, 18 and 12. Teaching them how to handle money was and is an on going process.
Right from a very young age, we would let them have their own pocket money and teach them to budget, i.e. their daily allowance is all they will get and no more. When we find that they can handle the limitation on how much they can spend and even better if they can save, we will give them weekly allowances in a bigger lump sum.
Monitoring how they spend and encouraging them to put aside (save) money for toys/gadgets/meals/activities they like and that they can pay it themselves without asking us for it is what we did. We would not buy everything they want, every time they want it. If they throw a tantrum we will not give in. If they do so in shops, we will punish by withdrawing that day’s or week’s allowances.
They have to save for items they want. If we give in to them they will never appreciate the value of money and that they may think money is very easy to come by. We will at times pay them for doing house hold chores, if they want extra pocket money. As they grow older, especially during high school years, we will encourage them to work part time, during their vacation. This will make them appreciate earning money is not as easy as they see their parents taking money out from ATM anytime of the day. They do not see what we do at work and how hard it can be. By working it will educate them that one have to put in some efforts in order to get paid.
Tags: children, giving & receiving, money
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