Teaching children the value of money

Teaching a child the value of money is easier when their teacher is a financially responsible adult. In today’s society, children believe that ATM’s are like public water fountains. Parents have somehow forgotten to teach their children that most people are not rich as portrayed on television.

Society makes a parent’s job very tough these days. Kids have a habit of picking on children for their lack of financial status or the lack of flashy clothes. Kids can be downright cruel, especially when you don’t prepare your children for these types of situations. 

Any child can be taught how to manage money and understand its value. Children that come from low to middle-class families know the value of money better than anyone else. It is easier to understand how important money is when you don’t have any. Kids in this financial category accept poverty easier than children born into wealth. This type of child is more likely to work harder to achieve their financial goals in an attempt to make their children’s lives easier. This type of child is also more likely to save their money knowing that it doesn’t come around often, so they will save it when it does come around.

Rich children can also be taught the value of money too, but they must learn the value of money from a different aspect. Children born into wealth should be taught that they are more fortunate than some children, but their status makes them no different than other children. Instilling respect into a rich child will help them be more respectful towards children who are less fortunate.

Both types of children should be taught that money has value, but its value is higher when it is earned through hard work and perseverance. Give your children chores and pay them for their hard work. Don’t pay your children as soon as a task is completed. Instead, set a day of the week as “pay day” to settle the debts owed to them, doing this will give your child their first dose of a real pay day.

Encourage your children to pay you for certain things that they need. Your children will never understand the value of money unless they are spending it in some capacity. Have them understand how expensive things are and how fast money is earned and spent.

Teach your offspring that they need to save their money to achieve their goals. Today, people want everything and they want it now, instead of waiting until they are financially stable enough to afford expensive items. There are no words to describe the feeling of accomplishment that accompanies earning money, saving it, and finally purchasing an item that you had to wait for.

Teaching the value of money is a good way to start forming financially responsible children, but teaching your children self-worth and respect will make this course of instruction complete. Finally, keep in mind that your children learn from you even when you don’t think you’re teaching them anything. You should be a good role model for your child, so lead from the front and by example, your child will be forever grateful that you lead them down the path of financial responsibility.