It doesn’t hurt to make your kids aware of your financial status nor letting them learn how much hard work it takes to make money.
When your kids are aware of those things, they will start to understand that they can’t easily demand you to buy that and this.
Kids who thinks that ATMs dispense any amount of cash we want forever. Will most likely ask their parents to buy them all the things they like and get upset when their parents can’t provide what they want.
Teaching your kids how to handle money at the young age means you are giving them an opportunity to live a better life when they grow up. When they know how to handle their money as a kid, they will be more responsible in handling their salary or income in the future.
Make it fun and exciting when you introduce money lessons to your children. Let them know they can make their own money even at their age.
Teach them to become innovate. Who knows, Your kid might become your business partner. Kids use their imagination a lot! You may discover ideas that both of you can create business out of it.
Teaching The Kids The Value Of Earning Money
Explain how you make money
Explain to them how you make money to debunk any belief they have that you have limitless cash stash in that money machine called ATM. Based on their level of understanding, explain to them when you are going to your work or when you go to your store to manage your business. Let them know that’s how you make money.
If you own a store, you can take them with you and little by little teach or show them how your store works. By doing so, you are not only telling your kids where you make your money but also you are training them the skill sets they need to run the business.
Build their money skills
At the age of 3, you can start introducing money to your kid by helping them identify a peso coin from centavo coin. Teaching the names of different coins and bills to your kids is a good start.
You can teach them money skills by playing with them. You can purchase the popular monopoly board games or pretend that you’re the store owner and your kids are the shoppers. Show them the things they can buy with the amount of money they have on their hands.
Show them actual transactions
You can go to the store, restaurants and other places to show them how actual transaction goes. You can let them hand over the payment to the cashier just to make them experience how it feels to pay for the goods you need.
Teach your kids not only the monetary value but also on how to track their spending. Let them know if it is a wise or unnecessary purchase that you made. Show them the right and wrong way of spending money.
Allow them to handle their own money
I read an online article where a mom teach her 3 kids how to handle their own money by giving them a dollar each and bringing them to the grocery store. They are allowed to spend the money on whatever they want to purchase. The only rule is, they must spend a maximum of $1 each.
The incredible mom is doing this every time they go to the grocery store until such time their kids learn to budget and become wiser on how they spend their dollar. Instead of making an individual purchase, they learn to combine their money to buy more and delicious food.
You can teach your kid the same thing or you can create your own strategy that you think is more effective way to teach your kids. As long as you allow them to decide what to do with their money.
Help set their goals
You can help them set and achieve their goals. Children tend to have a desire or hope to have the things they want to buy that are not immediate or not an actual need. Don’t always say yes to them. Instead tell your kids they can have them if they have the money.
Teaching them how to save money so they can finally buy the things they want is more effective than telling them to save money without setting a goal on how they will use their money.
When they can see their weekly and monthly progress, their excitement and determination builds up. Put their savings in a jar and seal it. You can also use a time-lock container so they can’t touch it until it’s time.
You can print a saving tracker for them that they can post in their room so they can mark their wins. Give them positive reinforcement like cookies or their special dinner for every week of successful saving.
Show how they can earn more
Teaching your kinds how to earn money at an early stage is great. You can encourage your kids to sell their toys, books or old clothes instead of being dump on a landfill.
You can assign a corresponding value to each small task and let them pick what kind of small task they wanted to do. It could be pulling weeds, organizing their toys or books, etc.
Let the little ones develop their financial skills while they’re young and raise a money-smart individual.