Daily Archives: January 22, 2015

3 Things All Kids Must Learn About Money

Published by:



The value of money is an imperative lesson all people must learn at some point throughout life. It is a vital essence of how humanity functions as a civilized society, no matter where in the world. As adults we often forget this lesson isn’t inborn within children, sooner or later, they have to be taught the importance of money and the value of earning it. Raising kids to be conscientious of money is a key role every parent has to, at some point in their lives, teach their kids what money is, where it comes from, and how it is used. It is always important to be completely honest with kids so that they may learn and accept grown-up responsibilities.

Earning

Everyone has had an allowance at some point growing up. A simple chore is done and your kid earns a dollar or maybe several for a job well done. The point of teaching your child to “earn” something is exactly that. That if you’re asked to do a task, you will receive something in return for the hard work. Simple tasks that require very little effort or some effort are the best kind to start your kid off with some basic responsibility. Mowing the lawn is the most practical way to earn money. A paper-route is probably the most hard-working job for a kid, but it cements a foundation of real-world responsibility. Still, if your kids are not old enough for hard-working jobs, then try setting up some house chores, like allowing them to clean the dishes or tidy up their rooms. If done correctly, they can expect to be rewarded for it.

Saving

Once your kids have an understanding of earning, it would be perfect timing to teach them how to save their hard-earned money. For this reason, piggy banks exist. Like a game, kids love placing coins into their own piggy bank because it is “theirs.” Teaching your kids to save is the next qualifying step to being money-conscious. This is can simply be taught, by telling them that if they save x amount, they can buy x item. DiscounTrue is a great place to look for inspiration on the subject of saving. They will quickly grasp the notion and will want to earn more each time. Also, ever so often, it is a good idea to check your kids’ savings with them. This will help them comprehend the concept of knowing how much they have before they can buy their preferred item.

Spending and Giving

The next step is probably the most important point to teaching your kids to be conscientious about money, the responsibility of spending. With the previous points solidly taught, children should have a sense of disciplined understanding of money before reaching the stage of using and spending their hard earned savings. Once their grasp of this responsibility is firmly held, taking them to buy their desired item is essential to secure the overall concept of money. Allowing them to buy something on their own, with their own money can instill confidence. However, there is one more lesson, the lesson of “giving.” Teaching a child to give is part of the core principals of money. For one, it can help build character for a child to know the importance of giving. It could also help avoid greed and avarice. It could also teach that money, while necessary, isn’t as important as other aspects of life that money can never buy.