Teaching Children the Value of Money

Kids are expensive in today’s world. As much as we love and cherish them, they can do damage to our wallets and our checking account. Do not get this confused with being shallow and cheap, but it seems like kids today have too many wants and we, as parents, give in to our child’s wants, by buying them the Nintendo Wii, the iPod, the brand name clothing, takeout, and whatever else they demand. But what many parents are failing to do is teach our child the value of money. By surrendering to our child’s wants they are associating that money grows on trees. Whatever they want, they get. The allowance we give them allows kids to spend without being accountable for their actions with money, because they are going to receive that allowance again.

All I am saying is we have got to teach our kids the value of money and please don’t leave it up to schools to teach our kids about money management. They are already bombarded with advertisements that encourage them to spend. Children learn greater lessons at home. Here are some mistakes parents make about teaching their kids about money.

Failing to Teach Regularly

Parents often wait until there is time to talk discuss “the money talk.”  Take advantage when you use cash, credit cards, and checks in your purchase to explain to your children what you are doing.

Starting Too Late

Time goes by way too fast, and do not get in the habit of thinking that you have plenty of time. It’s never too early to start teaching them. Before children influence your spending decisions as toddlers, influence them. As a parent, you can deal with their impulsive wants with reasoning and rules rather than rejecting them without an explanation.

Parents Don’t Allow Their Kids to Learn From Money Mistakes

Many parents want to control how their children spend their earnings from chores (notice I didn’t say allowance). Sometimes your child’s earning can be cash gifts from birthdays and holidays. Allow your child to spend as they desire. Then get involved by asking them what they purchase, why they purchase, and how they feel about the purchase. These questions will encourage conversation and your child will be open to express how they feel about the purchase.

Parents Fail to Educate Themselves

Parents have little hope to teach their kids financial skills if they lack it themselves. Take a financial education class if you would like, or take it with your child. You at least owe you child some financial knowledge so that they can begin a successful independent living.

Fail to Involve Kids in Family Finances

Get your kid involved in family financial meetings from time to time. Then your child will get the message that financial subjects are not taboo. This will spark their curiosity and open their mind to many financial lessons to come.

Conclusion

Spend the time to lecture your children on the value of money. Please don’t leave it up to schools, because they encourage spending, at least at home you can teach them to reason. I hope that you realize that educating our children about the value of money is very important and be sure to look out for more articles regarding children and finances.

 

Source - A Parent’s Guide to Money: Raising Financially Savvy Children by Alan & Gibora Feigenbaum.

 

 

Tags: finances, financially savvy children, raising children, value of money