From a child's point of view, he thinks that money comes from Mom and Dad's pockets. You need to take out your precious time to teach your kids about the value of money. The lives of children who understand money and how to handle it becomes far easier than those of children who don't.
As soon as they learn to count, you can begin teaching young children how to count money. Practice playing simple games that they will enjoy. You could place a nickel on the table and next to it place five pennies. Continue adding dimes and quarters. Before you know it, they will not only have learned how to count money but will understand its value as well.
Talk to your children about different ways to earn money. For example babysitting, cleaning out the basement, mowing lawns or shoveling snow. Allow your child to make spending decisions. They will learn from their choices. You can then talk to them about making money decisions before more spending takes place.
Encourage your children to set aside a portion of their earnings in a savings account. Let's say your child wants a new toy or game. You can teach them to save part of their income for that toy, while still keeping some money available for everyday items, or for going to the movies with their friends. You are teaching them to understand the value of both short-term saving and long-term saving.
Teach your children the difference between wants, needs, and wishes. Teach your kids that money comes from working. Show them how to budget and how to save. Teach your children to set goals. Nearly every toy children want their parents to buy for them can become an opportunity to establish a target.
Do you give your children an allowance? Give them their allowance in denominations that promote savings. If their allowance is $10, give them a five dollar bill and five one dollar bills. Encourage them to set a couple of the one dollar bills aside for savings.
Practice what you preach. Children learn what they are taught, but they mimic what they see. If you struggle with money, you can work on your finances while teaching your kids the value of money. A good education about money is one of the best tools you can give your children.
