The value of money and savings are some of the most important things that children need to learn. Since my children are quickly growing up, I feel the need for them to learn this. I would not want them growing up not knowing how to handle their money or always turning to payday loans because money is always lacking.

So I plan to embark on a mission to teach my kids the value of money and savings. Below are some nuggets of financial wisdom I got from my readings.

• Where does money come from? Some kids feel that their parents have an unlimited supply of money. By explaining to them where the money comes from, they start to understand the importance of having money and keeping it. Let them know that money comes from the work that you do.
• Start with allowances. If your child is old enough to be given allowances then do so. Let them have free reign over what they want to do with it. Talk to them to let them know that not spending the money and saving it is an option they could take.
• Open a bank account. Having their own bank account is such a huge thing for most kids. Once they have saved enough up on their own, either from their allowances or from gifts from friends and relatives, bring them to the bank and let them open their own bank account.
• Stop buying them stuff. Once you have given them allowances or they already have their own bank account, it would be best if you stop or lessen the stuff you buy for them especially if they do not really need the stuff. Tell them that from now on, since they already have money, you would have to let them buy some of the things that they want but do not really need.

It is invaluable once kids learn how to handle their own money and to save. Hopefully, I successfully impart these values to mine.

Share This