I stumbled upon this magazine called Northern Living which I got for free and found this article about Money and Kids. I’m still single but if I will have my family on my own someday (in God’s time), I will surely teach my kids the importance of earning and saving as early as I can. I hope they wouldn’t mind if I will share the article with you.
One of the most important things that every child should understand is the value of money. By imparting this piece of knowledge to them, you are not only arming them with the right tools to make money work for them, but also raising them to be responsible, independent adults. So if you want your child to be money-smart and develop good money habits, check out these tips from real moms.
1. Take baby steps. Start small and let her ‘experience’ money in little ways, such as giving her an allowance or opening a savings account that she’ll be responsible for later on. Just like what my Mom did for us, she opened my savings account since I was eleven years old. Another way is introducing the concept of the piggy bank. This can be her way of saving for something she want to have, such as toys.
2. Be candid. Don’t underestimate your child’s ability to understand money matters. Do explain why it’s better to be frugal and to appreciate what they have–in a language she understands, of course. Teach them to eat whatever is on the table, not to be choosy with foods. Inform them that other families sometimes do not have enough food so they are considered lucky that they get to eat three meals a day.
3. Let them experience money and frugality. Hand-me-down stuffs that your kid received from her cousins can also teach her to pay forward to other kids through her outgrown clothes so the new baby can use them. This way, she learns that we don’t have to buy new stuff all the time and that it’s actually cool to receive and give hand-me-downs.
4. Involve your child. Even if your child is too young to be given a lecture about money, involve her in doing money-related stuff to teach her how money is used and earned.
5. Make her work for it. Let them appreciate that money is hard-earned. Assigning your kid some chores at home and paying her for the ‘services,’ or rewarding her for getting good grades and winning awards in school will not only instill in her the value of work and frugality, but will aid her in becoming a responsible grown-up in the future as well. My Dad did it too. I remember when I was still studying and if I asked my Dad to give me stuffs I like, he always teaching me this idea. For us to get what we want, we should be willing to work hard for it so we can appreciate the real value of things.
It’s never too early to teach your kids the importance of earning and saving.