From a kid’s perspective, money is nothing short of pure magic. You go to a store, you find something you want and this money thing lets you bring it home. Try that with Harry Potter’s magic wand! At some point, you’re going to want to teach your children or grandchildren about the value of money. It might help to start them out after they’ve learned to count a bit. After all, money is in the numbers, right? Here are some other great ways to teach your children about the value of money.
Make Them A Bill Helper
Money comes in and money goes out. That is the fundamental lesson we all need to embrace when it comes to budgeting and paying bills. If you have a monthly bill paying routine (as you should), then you can enlist the young one to be the “bill helper.” They can put the checks in the envelopes and lick the stamps. This gets them in the habit of paying bills and reinforces that concept that sooner or later, everything has to be paid for.
Let Your Kid Pay
A great place to teach a kid about paying for things is at a local farmer’s market. Yes, you can pay for stuff at the grocery store, but there is just too much going on there. At the farmer’s market, you can establish that direct connection between work and pay. The farmer grew those apples. We want to eat those apples so we pay the farmer. You can even let your kid handle the money exchange. This will empower them and help make those connections between work and pay.
Let Your Kid Earn
Wouldn’t it be great if your kid can bring in a steady income? That is why we have so many Stage Moms. The first taste of a kid making money could come from the classic lemonade stand. There is also the “chore for allowance” scenario that is always productive. Now they can really see how much effort it takes to earn money. The issue then becomes what will they do with that money?
Set A Savings Goal
There will come a time when your child wants a special item. This will usually occur somewhere between Christmas and their birthday. The impulse is to make the kid happy and give them what they want. Before you head to the toy aisle, take a step back and set up a savings goal. Perhaps you can offer matching funds if your child manages to save a certain amount. The quickest way to teach a kid the value of money is for them to start using their own money.