Are your kids being taught about money

Recently, in a conversation over the phone with my Grandmother, she told me that my niece asked her to get money by swiping the card, just as her dad does, so that my Grandmother can get her a soda. It got me thinking, “How do kids view money? Do they know the value, or do they think money is given to us?” I decided I wanted to create a post on the best way to teach your children the importance and value of money. Below are my opinions on the subject.

Credit/ Debit Cards
In a contemporary period where most people don’t use actual cash
anymore, kids can’t really see how much things actually cost. They might start to think that the cards we use on a day-to-day basis is an unlimited source of money, rather than money out of our bank accounts that we earned.

I feel that showing them real life scenarios might help them understand the importance of money and what it truly means in the world. Below I have listed some real-life scenarios that your children will understand and relate to.

A Mall/Supermarket
A mall or grocery store is probably the number one way to explain the importance of spending money. Generally at malls/grocery stores, we have multiple brands and multiple prices against other brands. Some are expensive, some are slightly cheaper and some are much cheaper. Here we can show kids how much each costs and show them the price difference. You can show them why they are cheaper, why you should always watch for sales and how expensive it actually is to purchase foods, clothes, etc. They will start to gain an understanding of why you only purchase so much food at one time, why they can only pick out two shirts that day, etc.

At The ATM
When you take your child to the ATM, you can explain what it is. Why are we accessing it? Why are we getting money from it? You can explain to them that it is an effort of your hard work.

When the ATM is used, the money that comes from it comes from hard work, saving and managing your money. A major point to bring up is that the ATM is not an unlimited source of money and it does not spit out free money.

Pocket Money
Parents should give a small amount of pocket money to their children for them to understand the importance of money. Also, it is good to explain the concepts of budgeting, such as, how much is given? How much is spent? How much does it cost for the item your child wants? If they do not have enough, how much money do they have to save to buy the item?

This can help them understand the importance of money from childhood. These scenarios may help your child understand the concept and importance of money. It can help them grow wiser in terms of spending money. Try some of these scenarios out and watch how your child’s perspective changes.

 

References

https://www.verywellfamily.com/top-tips-on-teaching-kids-about-money-620135
https://www.experian.com/blogs/ask-experian/5-fun-ways-to-teach-your-kids-about-money/