Parents teach their children on how to be good and independent at a very young age. Along with this training, parents should also insert on how to teach kids the value of money.
According to Parents, author of "Kids and Money: Giving Them the Savvy to Succeed Financially," Jayne A. Pearl, kids can be easily taught about money. Taking kids grocery shopping, at bank trips, or even playing imaginary games like store or restaurant is already a good start.
In this simple way, they will know that money is used to trade things. They should know that it has value. Here are some things that you should be reminded when teaching kids ages below 10 about money:
Take your child shopping
Let your child experience saving and finding the best value goods that you are going to buy. This is a good hands-on training for your kids.
Don't say "We can't afford"
This will give a negative thought on your child and they might think that you are struggling in life. Instead, say that you are using your money wisely and buying those thing are not yet a priority.
Work and money
Tell your children that the reason why you work is because of money. Money is not a thing that they can just get if they want it. It is something that they need to earn by working.
Try to link household chores and rewarding them with allowance.
This idea will slowly sink in to children. This is a good hands-on training. They need to work on something to be rewarded or to earn. They will feel a sense of responsibility in working.
Buy a penny bank or money box (Piggy Bank) for their allowances
If your child at a certain age already receives a daily allowance then educate them the purpose of having a penny bank. If they have extra money that they were not able to use, they can put it inside the piggybank.
Tell them that the extra money will accumulate and they can use it to buy something they want in the future. This is a good way to teach them the short and long term savings, as well as good spending habits according to Forbes.
