Do your kids think your wallet is an endless source of cash? Do you feel like the bank of Mum and Dad is taken advantage of from time to time? Then read our go-to guide on how to teach your kids the value of money and where it actually comes from!
Tie Allowances To Chores
Kids need to appreciate their weekly or monthly allowance isn’t just part and parcel of life. Give them a list of chores to complete each week so they know the true value of a job well done. Whether it’s keeping their room tidy, making their bed, setting the kitchen table or walking the dog, tick off each of their ‘jobs’ when it’s complete so they know they will be rewarded with their allowance.
Money Doesn’t Grow On Trees
- Kids need to understand that every time you go to the ATM to get cash it won’t give you an endless supply. They need to understand that to get the money you need to work. That’s why mom and dad go out every day to earn money for the family to pay the bills, go on holiday and do cool stuff.
Don’t Spend It All At Once
- Before you go out to the supermarket create a list of everything you need and plan a budget. Take a look online for any deals and compare prices to other stores. Your kiddo will soon learn that by planning before you buy you’ll probably save money! Work With A Budget For kids to properly understand the value of money it’s best if you give them some. Once they’ve spent it all on the new toy, a trip to the movies or ice cream with friends, they need to understand they won’t automatically be given more. Once it’s gone, it’s gone and they have to wait until when their next allowance is due.
- So they understand credit cards and how they work to give them a task to do to really understand that it’s not free cash, you will have to pay for it eventually! Reinforce the idea that waiting pays off. Why not make cookies together, make sure you have some store-bought ones in the cupboard. Getting the ingredients and making something from scratch together may take longer but it’s way more fun.
- If you haven’t done already open up a bank account for your kid and encourage them to put part of their allowance away each month. This will teach them to save up for something special they want. The reward at the end will be worth the smile on their face.
Keep Track Of Your Allowance
- If they don’t have a bank account, have them track their money in a notebook. Writing down each amount they spend and each amount they receive will help them appreciate the value. Make sure they keep receipts too so they can check them off.
Create A Wish List
- Sit down with your kids and create a wish list. What is it that they aspire to buy. Not everything will be realistic so manage their expectations. Rank them from can do to can’t do. They will soon realize what they can and can’t afford. Keep Them Skeptical Did they see an advert on TV for a new toy, some new trainers or a cool piece of sports equipment? Kids need to understand companies’ sales tricks. They also need to understand peer pressure and that trends change very quickly. They don’t always have to compete with the cool kid in class.
Why Saving Is Cool
- Go online and show them how $1 can grow over time. They will be amazed at how quickly one dollar can grow into $10 and then $100. The more they save the more it grows too. Open up a bank account, a savings account or bond, something they can easily watch themselves with your help.
Sharing Is OK
- Kids need to appreciate that giving to others is a good thing. Have them choose a charity they donate to each year. Get them to give up some of their allowance or do a bake sale. By giving away some of their money to a good cause they will realize that charity does begin at home.