What You Need To Teach Your Kids About Money

Friday, July 26th, 2019
girl learning about money

What have you learned so far about finances? How will you teach your children what you’ve learned? As parents, you want your children to have a better life, and part of ensuring you can give them that life is teaching them the lessons you’ve learned (and maybe learned the hard way). 

While there are many things that they can learn by first-hand experience, these are several of the big things about finances that you should start teaching them now.

Money has to be earned

By earning money, children learn what money is worth. The value of work and the wages paid for said work should be learned early on. One way to do this is by giving an allowance in exchange for chores. Then, when they are old enough, encourage them to take a part time job so they can learn how to balance school, work, and their social lives. This will build a foundation for what they will have to practice throughout their lives: balance.

Money has to be saved

Saving money is one of the most important things children can learn how to do, along with understanding its worth. Life is a treacherous and tricky journey, full of many surprises and pitfalls. By knowing how to budget and save as adults, your children can build their own cushions for when they hit hard times. 

Further, by saving money, they learn how they can get what they want and even have an idea of when. Have them start saving up their money to purchase whatever item they have their hearts set on, be it a squirt gun or dollhouse. If the amount is too far out of their league (and attention span), you could give them a set goal to work towards, then pay the remaining portion. 

Money has to be spent

Just like money has to be earned and saved, it has to be spent. In fact, the entire purpose of money is to be spent as currency. Life as we know it today is based upon the foundations of payment and receipt of payment. The key to spending money is to spend it wisely and to spend it well. 

To instill this sense of smart spending, start teaching your children about coupons, discounts and sales. Then along the way, start teaching them about stocks and investments if this is something you are knowledgeable about.

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