5 Ways To Teach Kids About The Value Of Money

Not a lot of parents know how to teach little ones about the importance of money. To start you on this path, here are five ways on how to teach kids about the value of money that will hopefully result in creating financially smart and independent children.

1. Teach the difference between want and need

Making kids understand what is what they need and want will help them make practical spending choices, The Guardian said. There will be things that parents and kids may disagree with when it comes to a new video gaming system or a skateboard. However, this will be a great opportunity to allow them to work for the money if it's more of a want than a need.

2. Take them to the supermarket

Let your child be involved as much as possible from helping you choose a bunch of carrots, handing over cash to the cashier or even helping you sort out coupons, Baby Center reported. Another way to teach the value of money at the supermarket is by giving kids a fixed amount of money to purchase as much food as they can from a grocery list.

3. Open an account

As soon as kids are old enough, help them open a bank account so they can understand how the financial system works. The best age to do this is by eight years old since kids are more eager to learn without dismissing or ignoring their parents.

If you want to keep it simple, get mason jars and label each for a goal you want your child to achieve such as one for a toy, one for donating, or one for a movie ticket. Teaching how to save is the best way to teach kids about the value of money.

4. Make them do extra chores for money

Giving money right after they do their chores is not a good idea since chores are a responsibility they are expected to complete. Allowing kids to do extra work for money will make them experience the emotional highs and lows of money by saving, spending, losing money and saving all over again.

5. Allow room for mistakes

While parents are there to guide children, it is essential to allow kids to make their own choices and deal with the consequences of their actions. Any negative consequences will make them more careful to make smarter decisions in the future.

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