The concept of money to children can feel like an alien subject. Many children have to learn the harsh realities once they reach adulthood, and these realities may have been made simpler if some education had been given from a young age. If children are taught from a young age how to manage and understand the monetary value, they will find a lot less financial struggle when they are older. All parents want the best for their children, and caring for them mentally and physically should be viewed as equal.
If you are yet to know where you can begin with teaching your children the basics of money, there are a few tips and techniques that should be taken into consideration. Financial literacy is an important skill everyone should know, and even some adults that end up in bad financial situations have to go through a struggle to finally get the education they needed all along. Avoid any sort of financial problems for your loved ones, and consider these techniques mentioned:
Teach Them Young
If you want your children to reach that light bulb moment sooner rather than later, you should teach them as early as possible. As soon as they can fluently talk and begin to become intrigued by new concepts, you should ease them into the money topic. You might start with easy strategies such as allowing them to hand cash to the cashier and showing them how to look at receipts to see how much has been spent.
Also, it is important to teach them how cards work and help them understand that digital money is equal to physical money. Technology is constantly advancing, and so is how we use our money. Perhaps allow them to also pay for shopping with the card, and teach them the value of things and the idea that you should consider how much you are spending money you spend your money on it. There are many small fun ways you can teach them from a young age, and starting to allow them to handle money exchanges is a great way to start.
Get Your Kids A Piggy Bank
Piggy banks are an effective way to teach your children to start accumulating their savings over time. If you start giving your children pocket money for good behaviour or doing chores you should always give them a place to store their piggy bank and look after it themselves. Allow them to manage their piggy banks themselves if they are old enough, and challenge them to save as much money as possible. Have a chat with your children and ask if there is anything specific they would like to buy and save up for. They should understand that they won’t be able to buy a diamond ruby ring with the money they will have, but give them an idea of realistic purchases they can make. Plan a saving strategy with them, or if they like to buy sweets weekly make sure they don’t spend their money during the week on other toys. This is a useful way to start teaching them about the value of savings and allowing them to manage their money is empowering and will make them feel more confident and responsible.
Give Them Something Valuable To Look After
As well as teaching them the value of money, they should also learn the value of objects in the home. Of course, they won’t be able to buy a flat-screen TV with their weekly pocket money, however giving them a valuable object to look after can be an important lesson to teach them. For example, you might have a family heirloom such as an antique engagement ring that has been passed down through generations, and allowing your children to look after these precious objects ahead of time will save them from losing their possessions. Some things are not replaceable, or they cost a lot of money to replace, therefore children need to learn how to look after their belongings at an early age.