Money can appear like magic when you’re a kid. Mom or dad puts a piece of plastic in a machine and voila: instant access to money!
You and I both know that it’s a lot harder than that to earn money. There are benefits to having your kids understand how hard you really have to work for the money that comes out of those machines. Here are a few simple ways to teach your children that money isn’t magic:
- Set the ground rules—you buy them what they need; they have to find a way to buy the things they WANT. Teach them that if they’re not going to find a way to save, then they’ll need to learn to live more modestly.
- Give them chores and pay them a SMALL allowance—Eventually they will come to realize that they need to put in energy and effort in order to earn their allowance. This shows them that money takes a long time to build up so they need to be patient and save consistently.
- Tell them to be creative—find some ways to make more money like selling lemonade or mowing lawns to earn more to purchase something the want faster.
- Give them a piggy bank—having their own place to store money can help them stay focus on saving. And there’s nothing more rewarding then knowing the pig is getting heavy from all the money they’ve saved!
Not only will these quick pointers explain the concept of money to your kids, they can help your kids learn to plan for their future.
Are there ways that you teach your kids about money? Share some of your tips in the comments below.