5 Ways to Teach Value of Money to Kids

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……???

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.

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