5 Ways to Teach Value of Money to Kids

teach kids value of money

How do you teach value of Money to your kids?

There are times when you get such a topic to write wherein you can talk a lot, but for writing the brain goes into splits – debating on what to leave or add?? When I learned about the topic shared on #mondaymommymoments, “How do you Teach Value of Money to Kids made this post as draft ‘only‘; waiting to re-read zillion times – just to add/delete few more times.

Money – we all know the purpose, importance, and value of this. It’s very crucial for the living and yet we call it’s not THE thing in life (generosity) But when it comes to teaching kids the ‘Value of Money’ how are we doing that? Most of my friends and colleagues live in nuclear families – wherein both parents are working and the kid is either at daycare or under a relative’s care. Hence, when they get time off with the kids – the pleasantries are all around. Fulfilling demands – without being questioned of course (haven’t you heard of guilt cautious) But what are kids imbibing from all this……???

value of money

So, let’s talk about a few ways to Teach Value of Money to The Kids –

1. Talk about necessities –

Collecting play-dough, crayons, McDonald’s freebies on every visit is not a necessity. It’s really important to teach the value of money attached to the necessity of their demand. Last month my little lady wanted to get a new swim-gear. When I asked her the reason – she said, I like Frozen collection and I want to have one of that. So, how do you curb such demands – simply explain the logic, kids are much smarter today than their age.

2. Let them earn –

Create an environment where they understand all good deeds get them some brownie points errr.. coins here. We have made a piggy bank for her wherein she keeps her reward money. The reward for being best in what she is doing or how she behaves. All her money then either goes into her choice of purchase at the end of the month or in her savings kitty.

value of money

3. Money Talks –

Yes, talk about the value of money with your kids. This one is tricky as we have to do according to their age. My daughter is six so I cannot talk to her about monthly economics. However, I still tell her about the cost involved in everything we buy or intend to do.

For example – if she wants to have pizza and then just have one morsel and says enough. I then explain to her the money value and hard work is done on that particular pizza. Or say if she wishes to have a brand new toy/dress/shoes etc (which is not at all required). I explain to her the reason on refusal or talk her for barter. (I do not hesitate to tell her this is uber expensive or not needed)

4. No Competition with Peers –

This is something which you have to imbibe in them day after day, repeatedly (when they are in tender age). Kids definitely going to copy what their friends do, this gets little tricky when it comes to spending. I always get weird demands from her during school days – Doraemon watch, Elsa’s dress gown, Barbie Bag or some funky dory school supply. Hence, this has become my daily dose of ongoing gyan session where I keep telling her this is not required.

5. Lead the way –

Kids are observant we all know that they learn from us – our behavior, our attitude, our belief system. So lead the way with an example – our reactions toward value for money imbibes in them directly. Hence, make sure your behavior towards monetary teaching should be the same as you which them to learn.

When it comes to talking and preaching it’s an easy task, but in real life scenarios when kids ask multiple questions about what has just been told to them about Money & it’s value – it’a become really tough. Practice makes a man (err…mom) perfect so keep on practicing I am sure we will be able to imbibe Value of Money in our kids sooner.

Linking this post with #mondaymommymoments hosted by hosted by Amrita and Deepa

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  1. Nice set of points Dipika specially competition with peers. I still struggle here, she needs Forzen dress because her friend has bought. She now has to revamp her whole home because some one else is doing. My mommy challenges are going on.

    1. geee.. we all are sailing in the same boat Minakshi. these are still somehow manageable, she asked me get a ‘little brother’ as her friend has just got one. 😀
      Thanks for reading and connecting

  2. Amrita Basu (Misra)

    I loved the post Dipika. I am suffering through dress ,Frozen pencil box and Brett bag sores too.Gratitude point about no competition with friends thing

  3. Amrita Basu (Misra)

    I loved the post Dipika. I am suffering though Elsa dress ,Frozen pencil box and Barbie bag too. Great point about no competition with friends thing though.

    1. hahaha that’s true Amrita it’s too tough to handle at times – specially when they escalate to next level 😉 thanks for reading and liking

  4. You have collaborated real important points Dipika. The intention of every parent is the same it’s just how we teach them. And yes your site is looking great! !!

    1. Yay!!! Thanks Geethica, I kept it minimalistic more emphasis on posts. Still loads to do.
      Thank You so much yes agree we all mean to teach our kids the value of money.

  5. Collecting freebies at Macdonalds is not necessary .completely agree to this point.
    Well written post dear.

  6. Handy tips Dipika! The pizza one makes a lot of sense as we see so many kids indulge in wasteful expenditure

    1. Thanks Akshata, glad you like it. 🙂

  7. Love the way express your words

    1. Thank You: )

    2. Thank you

    3. Thanks dear 🙂

  8. Superb tips

  9. Nice one! Everyone should teach this to their kids !

    1. Thank you Soniya

  10. Shreemayee Chattopadhyay

    A nice one Dipika. I like how you explain everything to your lil one. The reward point is what I always would do.

    1. Thanks a lot Shree for reading and your feedback.

  11. You have put in great tips! These are amazing tips!

    1. Thanks dear..

  12. Great share.

    1. Thanks

  13. This is so important to inculcate in kids these days. I worry about it. Will use your tips when T grows up a little. As of now i have given standing instructions to grandparents that it is not necessary that they bring a gift everytime they come to see babyT.

    1. Thanks for connecting dear, yes I agree small changes make a lot of difference in later course… but babyT is so young.. let the baby enjoy all the attention and goody gifts as of now 🙂 Thnk You

  14. a very well written article on most important topic…we live in hypocrisy we do things for money but keep our kids away from the realisation that it has to be earned..really loved this article

    1. Thanks a lot dear.. glad you connected to the thought

  15. All the points are important but I feel point 5 is the most important. Our behavior is guide to them. We cannot do impulsive buying and asking them to suppress their feelings towards some toy they have seen in the store. .

    1. Yes I agree Alapana, thanks for reading and sharing your feedback.

  16. These are some very good and well explained tips…

    1. Thank You so much: )

  17. This is sooo important yaa.. very good post and very helpful too M sure

  18. Exactly. This is something every new parent should read

    1. Thank you Taranpreet.

  19. I totally believe that savings should first be inculcated in the lifestyle of the mother. Thank you for sharing your tips, makes a lot of sense ?

    1. Thanks dear, truly appreciate you time and feedback

  20. I want to inculcate this in my child as he grows up. Amazing post 🙂

    1. Thanks a lot Anchal 🙂

  21. Nice one.. You have written so well… This is the problem of every mommy… We should teach the importance of money to kids from small age… Thank you for such informative post…

  22. Important topic indeed! Kids get everything pretty easily now a days. So yes, they have to be taught the value for money.

    1. Thank You

    2. Thanks dear

  23. such an important article to read in today’s time. Talking to our kids is absolutely necessary.

  24. I completely second you here… You have shared some great tips here

  25. Great points Dipika. I loved the peer competition one and agree we need to teach kids to earn whatever they want and not ask for everything they see with their friends. Thanks for linking up with #MMM ?

    1. Thanks a lot Deepa.

  26. Great Pointers Deepika!! I hv always been frugal when it comes to spending on toys and other playthings for kids. I know children do get angry and sad for a moment – but teaching the value of money these days seem to be very important..

  27. […] talking about money and saving at the same time also teach the most valuable lesson to kids – Save money for better. Do share your valuable tips on How You Plan To Spend & Save During […]

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