Money and time are the two most valuable commodities in a person’s life. It is very important for every individual to realize the value of spending his/her time and money very carefully. In fact, these values are so important that they should form the base of every person’s childhood. The current generation of kids is moving so fast regarding growth in technological knowledge and competitiveness that it is all the more important for children to know the value of time and money.
There are subtle ways in which a parent can teach his/her kid how to respect money. Let us have a look at the fundamentals of these values that can be ingrained in your child’s core values. Ensuring that your kids receive this knowledge at a young age will help them build a strong foundation for a secure financial future.
Tips to Teach Kids the Value for Money
1. Teaching the Importance of Saving
A simple way to teach your kid the importance of saving is by giving them a piggy bank to store money in. Every time you take your kids out for grocery shopping, you can award them small amounts, such as a few cents or dollars, for helping you out in carrying the bags or pushing the shopping cart.
This way your kid will realize the value of ‘earned’ money from a very young age. You also need to guide them to save these small amounts in their piggy banks to eventually help them buy a toy that they like.
2. Teaching the Importance of Spending
After you teach them savings, it is important for you to teach them how to spend. They should be aware enough to know their financial status before making a heavy expenditure. To teach the importance of spending, you can set goals for them.
Small goals like, “If you save an X amount, you can buy a small bag of chocolates, but if you save a Y amount, you can buy a bigger bag of chocolates” can help your child understand the importance of spending.
3. Teaching the Importance of Sharing and Charity
Another important aspect of finance is sharing and charity. You should always motivate your kids to share a part of their savings/earnings with their friends/siblings.
Not only will this help your child make new friends, but will also help them realize that there are some things like love and friendship, that cannot be bought with money. Ensure that your child is kind enough to want to help a poor person out.
4. Teaching the Basics of Banking
Although it is not possible for your child to understand all the hefty financial terms of banking. It is easy to teach them the core concepts of interest and returns. You can teach them this by giving them small incentives to buy the things that they like. You can tell them, “If you save X amount of money to buy a thing that costs Y, I will add to the rest of the amount.”
These are simple tips that every parent can follow to teach kids the value of money in the most simple and efficient way.
