Let's be honest, no matter how smart a child is, they don't understand the value of money. It's not their fault, they don't have to pay the bills or work a job. This doesn't mean that they can't be taught, though. In fact, teaching your kids about money early helps ensure that they'll have financial success later on. Follow these 6 tips for teaching your children about money.
Get Them A Piggy Bank
If your kids are still small and can't add or subtract yet, getting them a piggy bank or coin drop is a great way to introduce the concept of savings to them. They won't grasp the full impact of savings, however, teaching them to put money away from an early age is a great practice to get them started on. Additionally, as they get older you can tell them that they can use the money from their piggy bank to buy things that they would like.
Make Fake Money For Doing Chores
Now if your children are a bit older, and they understand different numbers along with addition and subtraction, make some fake money (or buy a set of monopoly money). Give this money to your children for them doing chores that aren't just expected of them. In other words, if they take out the trash or do the dishes they get awarded money. If they are just making their bed or brushing their teeth, they don't.
This gives them a reward system but also teaches them that not everything they do will have a financial reward in life. This is an important lesson when teaching your children about money.
Make Fake Money For Doing Chores
You can have a lot of fun and make the experience a lot of fun for your children by creating experiences that cost the fake money they earn. It can be simple things like setting up an ice-cream station where they pay for how many scoops they want along with the toppings. Or you can create an at-home cinema experience, where they buy tickets and snacks from the kitchen.
This teaches them how to spend wisely and that they can't always get everything. Also, it's a nice family activity.
Play Games That Use Point Systems
When teaching your children about money, try to play some games! Monopoly, although based on money, isn't actually the best board game to play with your kids. This is because Monopoly tends to cause fights among families and when you're knocked out, the game loses all fun. Instead, look at interactive point-based games. Catan is a great game as it can be played cooperatively as is the Magic the Gathering Board Game. Ultimately though you can adapt any board game you already have to teach some values about handling money. Just as long as things need to be bought or sold.
Have Your Children Pay For Things At Checkout
Giving your child cash before you go shopping for them to keep tucked away to check out is another way to teach them the value of money. By having them pay for the items at checkout with cash they'll, first off, feel pretty cool and grown-up handing the cashier the money, but also they'll see the money disappear for the items you've picked. This is a great real-world way of teaching your children about money.
Have Them Sit With You When You Pay Bills
Not everything has to be hands-on and having your children sit with you as you pay your bills is a good way to get them to see where the money goes. It's a good idea to keep a pen and pad for this so that you can write down how much money you start with, and then subtract the bill amounts as you go. Then at the end, they'll see how much is left over, showing them that how much you earn isn't exactly how much you have to spend.
Remember to start teaching your children about money early, it'll set them up for success later on.