Teaching children some basic money management skills will allow them to understand how money is not magical and it takes a lot of work on Mam and Dad's part to earn it
It may sound silly it's good for kids (even at a young age) to know about money and how it works.
Having children that are unaware of how to make money and where it actually comes from will only make it harder for you as they get older. Teaching children some basic money management skills will allow them to understand how money is not magical and it takes a lot of work on Mam and Dad's part to earn it. Here are some things you could teach your kids about money and a few tips on encouraging good money habits for kids.
Earning money is hard- Youngsters should know that earning money is not easy and that everything around them costs money, even things they don’t realise like electricity and heating, these things are not miraculously there to heat them up or to put lights on they have to be paid for. There is also a huge difference between what one needs and what one wants, so your kiddie might want a toy but actually need a jumper. Explaining this will make it easier when your nipper wants this and that but you really haven’t got the money to spare that week.
Saving money for the future- Youngsters should know that if they really want something they may have to save for it unless it is a necessity like a scarf and gloves. You can begin by giving your young kids pocket money for helping around the house and doing chores, and encourage them to put it away so they can get something they love soon enough.
Spend money wisely- If a kid saves loads of money to buy an expensive game at least ensure it is worth it, rent the game beforehand if possible. Throwing money away because your kid thinks he/she has loads is no way for them to behave and you must instil a good money ethic for them. Be a good role model at home, buy things you really need and avoid leaving stuff about that cost a good bit of money but you are not using it anymore.
Share it if you can- I am not suggesting you tell your child to throw their money away but if they get a good amount of money for an occasion like a birthday, encourage them to save some but to also give a small amount to charity. It doesn’t have to be a huge amount but showing them giving to others is a nice thing to do for those less fortunate. That doesn’t mean your child should feel superior for having money and you should always ensure your nipper knows that everyone is equal regardless of their income.
Together as a family you can all work as a team and really appreciate what you have and appreciate that you have to work hard to get things in life, as nothing should be handed to anyone. A few euros add up and good things come to those who wait!