Stories I only tell my friends: The Power Of Belief-System

August 20, 2011

Teaching Children the Importance of Money

Filed under: Uncategorized — mylittleblackpen @ 4:25 am

Children seem to be born with an insatiable desire to spend. Whether it’s Christmas, birthday parties, or a trip to the local mall, children are never too shy when it comes to vocalizing their wants. And sometimes, they’re relentless.

Parents face this on a daily basis. Dealing with the barrage of purchase requests becomes a part-time job. What’s the best way to give your child a deeper understanding of where money really comes from? Reducing greed, instilling awareness, and teaching good work habits in children will go a long way to creating financially successful adults.

7 Ways to Teach Your Children About Money

1. Start Early
The best way to start is when they’re young. Showing them the importance of money will help them to understand why they can’t have everything they see. Begin by explaining the process of working:

• Why you have to go to work
• What you do for your employer
• What you receive for doing it
• Why you need money

As soon as they’re ready, teach them about coins and dollar bills. Show them how many coins equals one dollar, how many dollars equals a five-dollar bill, and so on. The earlier they have an understanding that the green bill on the counter is not another coloring page, the better.

2. Turn the Water Off
Now that your child has some understanding of how money is earned, it’s important to teach about waste. While explaining about spending money, teach them about the household bills. The ones they’ll grasp the easiest are the ones they can see. The utility bills are a good example. While they’re brushing their teeth, teach them to turn the water off until they need it again. Explain how the water going down the drain is like money going down the drain. And, when leaving an empty room, teach them to turn the lights off. Explain to them that the less money wasted on unnecessary bills is more money that can be used for household groceries, fuel for the car, and family vacations. Give them the sense that your wallet is not a bottomless pit and that, when payday arrives, the money is allocated for certain expenses.

3. Differentiate Between “Want” and “Need”
Children think they need everything they want. Teaching them the difference is an important step in helping them decide what to do with their money. Some important questions for them to think about, include:

• Do they already have what they are asking for?
• If so, is it broken, lost, or missing parts?
• Can it be repaired?
• How often do they play with it?
• What do they really need, instead?

Marrying want and need can be a creative way to save money and teach restraint. For example, a young child that wants a new fire truck but needs new sneakers, may be just as happy with a pair of sneakers with a fire truck on them.

4. Make Saving Fun
Put a piggy bank in the kitchen. Make a game out of cleaning up by letting them put coins in the piggy bank after each toy is put away. Then, when the bank is full, have them sit on the floor with you and wrap their money into coin rolls. Bring them to the bank with all of their wrapped coins. Have them trade in some of their coins for dollars, the others for savings. Sign up for a bankcard and let them use the ATM to make withdrawals from their own account. Reward their good efforts by taking them shopping to purchase what they need.

5. Give Them Purchasing Power
Let your children be king for a day. Take them to the store with you and help them to understand prices, sales, and ingredients. Then, have them decide which items are the wisest to purchase. Establish a budget for the shopping trip and make it a goal to stay within that amount. Give them a calculator and let them keep track of how much you are spending. If you need to override their decision, make sure they understand why. This will both broaden their sense of responsibility and improve their analytical skills.

6. Teach Them Personal Responsibility
The simple concept of teaching a child how to care for and take responsibility for their personal possessions helps them to understand value. Value is crucial in appreciating worth. Once a child really appreciates worth, the concept of money will fall into place.

Easy exercises include:

• Putting coats and shoes away — installing easy-to-reach coat hooks solves the problem of little arms.
• Putting toys back together with all of their parts intact and storing them in a safe place.
• Keeping their clothes folded and stored in dresser drawers, so no one can step on them.
• Making sure books are always put on bookshelves, never on the floor.
• Carrying unbreakable dishes to the sink.

7. Let Them Work
Instead of just giving out a weekly allowance, let your children earn their money in small ways. From cleaning up their room to mowing your lawn, jobs are essential in teaching children that money will never grow on trees. Pay a fair wage. Don’t overcompensate but make sure the child has enough incentive to want to work, much like an adult. In addition to payments, make sure you praise them for a job well done.

Teaching children from an early age about money can save you and them a lot of trouble in their later years. Remember that children, as adults, most appreciate those things that they’ve worked hard to get. You aren’t doing your children any favors by buying them everything they want. A little financial instruction can go a long way to helping your children become financially responsible adults.

A Little Black Pen

Advertisements

111 Comments »

  1. I found myself just simply in search of this data for a while. After six numerous hours associated with continuous Googleing, at long last I purchased the idea as part of your website. I ponder what’s having less Search engines plan in which don’t rate this specific beneficial websites when it comes to the top listing. Some of the leading internet sites usually are brimming with rubbish.

    Comment by a cool way to improve — October 31, 2012 @ 11:41 pm

  2. Hi! Quick question that’s completely away from content. Do you know how to make easy your site cell safe? My website appears to be weird if checking through my very own apple iphone. I’m seeking a template or maybe alexa toolbar which might be allowed to fix this challenge. For people with virtually any strategies, please talk about. All the best!

    Comment by anchor — November 1, 2012 @ 2:37 am

  3. Appreciate your one’s wonderful placing! My spouse and i absolutely enjoyed looking through it, it is possible to a superb article author.I’m going to ensure that you lesemarke your blog site and will eventually return time will come that. I’m going to strongly encourage proceed your excellent writing, contain a pleasant morning!

    Comment by anchor — November 1, 2012 @ 4:01 am

  4. Hey there, i believe of which discovered lots of individuals seen the site i reached “return pretty much all favor”.I’m looking to learn what you might want to rise the site!I personally calculate that it is private okay try using a sum our neurological!!

    Comment by yesterday chords — November 1, 2012 @ 1:55 pm

  5. Heya! Nintendo wii gaming console that’s absolutely further from content and articles. Did you know how you can make simple and easy your online site cellular telephone safer? My website seems weird in the event that viewing from our new apple iphone. I’m trying to find getting some sort of style or even they they application this were competent to mend the challenges. For individuals through basically any specific strategies, you should consider. Wonderful!

    Comment by hey jude chords — November 1, 2012 @ 5:08 pm

  6. Hey, i think which noticed many people looked at this site then i gotten to “return all favor”.I’m wanting to find what you might want to increase this site!I personally estimate that its very own acceptable try using a quantity the human brain!!

    Comment by at yahoo — November 1, 2012 @ 8:54 pm

  7. Greetings! That is our to begin with visit to net web site web site! We’re a number of volunteers and in addition operating a progressive project within a small area around a the exact same specific topic. Your internet site presented the country valuable chemical to the office when. You require completed kinds fantastic a career!

    Comment by country roads chords — November 1, 2012 @ 8:57 pm

  8. Hey! And this can be our first go to to world-wide-web blog blog! We’re some volunteers and also beginning a revolutionary paper inside of a area surrounding the actual the exact same specialized sector. Your internet site presented the country handy compound to the office for. You may need performed ones excellent occupation!

    Comment by 21 guns chords — November 1, 2012 @ 11:23 pm

  9. Be pleased about many instructional blog page. The area you choose usually might Exercise change into designed to form of chemical created in this type recommended method? I’ve ohio state university physicians which will we’re currently managing on, so that i have been completely with all the fashion launched with this model of info.

    Comment by how great is our god chords — November 2, 2012 @ 7:17 am

  10. Your blog could be outrageous! I’m talking about, Ive not been hence entertained as a result of anything throughout my life! The vids are perfect for the following. Setting up, exactly how would you manage to find an issue that complements look associated with producing very well? I will be really gratified I started looking at this article right now. Youve employ a follower in me for sure!.

    Comment by somanabolic muscle maximizer — November 13, 2012 @ 7:32 pm

  11. I was just looking for this information for some time. After six hours of continuous Googleing, finally I got it in your site. I wonder what’s the Google’s problem that does not rank this type of informative websites closer to the top. Usually the top web sites are full of garbage.

    Comment by http://youtube.com/watch?v=xbL01vfSggg — January 7, 2013 @ 1:01 pm


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: