How Children Learn The Value Of Money
Children learn in a variety of ways, but when it comes to a concept like money, it can be hard to get them to see right from wrong. After all, they don’t see the money in your household - all they know is that there’s food in the fridge and toys to play with when they want them.
And the younger your child is, the more foreign the concept of money will be to them, and that’s why it’s key to show them young what the value of money is! Don’t worry, it doesn’t have to be all that hard to teach them either. Let them grow up money savvy, and ready to take on the financial world.
From Watching You
Kids learn the most by watching and emulating you. They learn through the things you do and say, and they’ll want to copy them, simply because you’re their parent and they love you. And that’s why you need good money habits - they won’t learn the right things otherwise!
And if you need to learn more about how money works, make sure you’re picking up the slack when they’re not around. Don’t let them see you making big money mistakes, because kids pick up on signals even when you try to hide them. And if they do, it’s important to sit them down and tell them what to do better. Because kids also learn…
By Having Honest Conversations
So that’s where honest conversations come in. When you can tell your child about money and how it works, in the simplest of terms, they’re going to take these lessons to heart. Of course, scary things like debt repayments and loan sharks can stay off the table here, but teaching them about the importance of saving? And that you should never spend more than you earn? And that money doesn’t grow on trees? These are things you shouldn’t be afraid to talk openly about, to make sure your kids pick up the right kind of money habits.
Through Handfuls of Responsibility
And then we come to making them responsible for their own pennies. Every kid out there gets pocket money (if the parent has some to spare), and having the responsibility of keeping these pennies safe can teach your child a lot.
When they know money isn’t quite so renewable to them, and that it’s precious and takes time to save up, they’re going to be very careful about what they do with it! And that lesson stays with them their whole life - they’ll learn the real value of looking after what they earn, and what happens when they don’t have anything to spend. They simply don’t get the toy or treat they really wanted!
Kids can learn about money in a variety of ways, so make sure those ways come from you. Because when kids are confused and/or curious, they’re going to ask a lot of questions, and it’s best that answers are ones you approve of!