I'm sure most of us will agree that money matters - learning to manage your finances is a crucial aspect of adult life, even more so when you have kids and a house to hold together.
Teaching kids the concept of money from a young age can help build a foundation for financial independence and a firm understanding of how money works.
So, how do you teach your child the value of money to be financially independent in later life?
How to teach your kids about the value of money.
Money doesn't grow on trees.
To a child, money comes from their parents pocket or in some cases, they simply tap a plastic card and poof, it's paid. Naturally, children assume cash is readily available whenever it's needed, and for this reason, it is essential to teach them the basics of earning a wage. Money is earned by working and the harder your work, the more money you get.
No matter how old your child is, give them opportunities to earn an allowance by doing additional chores around the home. Alongside their daily responsibilities of making their bed and keeping their room in order, consider paying your child a small wage for tasks such as cleaning the car or picking up the dog poop.
Use a piggy bank.
Nothing too snazzy because we are all about saving here. Upcycle a box or repurpose a jam jar with your child to save any money they have earned doing odd jobs around your home. Using this money set short-term savings goals to buy something they want or need. For example, if they have their eye on a toy, let them save for it and buy it themselves.
Get them involved.
Regardless of their age, show your kids the impact money has on your day-to-day activities by letting them participate in real-life financial decisions. For example, let them help you budget for the week by paying bills and meal planning. By opening a discussion and allowing them to part of it, they will be able to understand the world of finance much more easily.
Help them identify different coins, their worth and the cost of everyday items playing simple interactive games such as shopkeepers using real money. Kids learn primarily through play, and it is an excellent way of teaching children necessary maths skills from a young age and will benefit them throughout their early school years.
Learn from mistakes.
Children need to make their own choices and choose how to spend their money, and sometimes they will make the wrong one. It is essential as parents that we let them make mistakes, to learn, grow and deal with the consequences of their actions. In time, it will help them make smarter financial decisions.