Home
>
Parenting
>
Teaching Your Children About the Value of Money

Teaching Your Children About the Value of Money

We take it for granted that children know how money gets into our wallets. The tips below will guide you through teaching your children the value of money.

Now I'm not referring to the value of stocks and bonds, compounding interest, or the current market value of a U.S. dollar.

What every child should be taught at some time, is: the purpose of jobs (how we earn money), saving for goals (how to save money), limit needless spending (how to budget).

It's up to you to decide when and at what age it is appropriate to discuss the following topics. But keep in mind that if you don't teach them the skills to make educated, responsible decisions with their money, you will be holding back a valuable lesson that should be taught. Learning how to successfully manage money is a skill they will have for life.

Where To Start

Don't assume your children know the meaning or purpose of a job, bills, banks, etc...

Let them see you pay your bills. Explain to them how you have 'X' amount of dollars per month to pay for everything. Point out the dangers of getting into debt (credit cards). Explain that ATM machines are not magic money dispensers that give you as much money as you need, for free.

Learning comes from experience. Just talking about money will not get the job done. Learning how to earn, save and spend money appropriately comes from real life experiences.

If your children do not have an allowance already, think about starting one. Only when they have their OWN money to manage, can they put your lessons into practice.

When you are discussing allowance with your children, relate it to your own life. Explain to them that when you want to buy something, you must first work to earn money, then save enough money in order to purchase it ie: car, house, clothes. Tell them that if you don't go to work and earn money, there's no way you can afford to buy what you want.

You can then explain to your children that if they want to buy a new toy, they must earn the money in order to buy it.

It's Up To You

You can design your childs' allowance and chores however you see fit: weekly, bi- weekly, monthly, pay-per-chore.

One method that's effective is designating 'X' number of chores, for 'X' number of dollars per week.

For example: "Johnny. You will earn $5 a week if you do these jobs/chores: water the lawn (twice), take out the garbage, vacuum the house (twice), and feed the cat everyday."

It's up to you to develop a list of chores that can be done around the house, and an appropriate allowance amount to go with it. In other words, you shouldn't have your child painting the whole house for a quarter.

You should also be sure and make the jobs/chores age appropriate. A twelve year old will be able to do more than a seven year old, so take this into account when thinking of chores.

Now don't confuse allowance, with the basics. What are the basics? Keeping their room clean. Doing their homework. These are jobs that should be done without question. Period.

Once You Start

When your children earn their allowance for the first few times, they will want to immediately go and spend it. Fear not. This should be expected. Here is where you can start to teach your children.

Sit down with your children and talk about the "things" they want to buy. Have them prioritize their items on a list, in order of importance. This list can be considered their "Goal Sheet" - the reason they are saving their money.

Have them keep this list in their wallet/purse/piggybank, so they will always be able to look and see what they are saving for. You should also keep a copy of this list just in case they lose it, or want to purchase something that's not on it.

The next time you are in a store, and your children want to use their money to buy something, first ask them: "Do you have your wallet/purse that has the money you've been saving?".You can then ask them if that particular item they want to buy is on their list.

Asking these questions will get them thinking about the items importance. Is it more important than the other items on their list? Let your child make the decision whether to buy or not.

Regardless of what you say, more than likely your children will make the purchase even if the item is junk. That's ok! This is a lesson your child must learn. Only when the initial thrill of the toy wears off, or when your child realizes that the other items on his/her list were more important, will they begin to understand the value of their money.

Conclusion

These are only some of the possibilities you might want to look into. Regardless of what you can take from this article, adapt it so it fits into your family lifestyle.

Money management is a learned skill that comes from real experiences. It is very important that children learn the value of money and the role that it plays in our lives. Teach them how to make smart, educated buying decisions. Stress the importance of setting priorities and working to achieve that goal.

Once your child achieves one of his or her goals, they will understand what it takes to be successful. They will know how to budget their money and limit unnecessary spending in order to buy what they REALLY want or need.

Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.savingsecrets.com

efficient cleaning crew Northbrook ..

In The News:

Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.

Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.

Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.

New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.

FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.

New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.

OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.

Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.

New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.

DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.

Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.

Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.

Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.

A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.

South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.

Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Fake AI apps disguised as "ChatGPT" and "DALL·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.

Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.

Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.

NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.

Teaching Your Children About the Value of Money

Parenting