Teach your children the value of money

SUPPLEMENTAL KNOWLEDGE
Jhunie B. Wahayna

From a child’s point view, money comes from mom and dad’s pockets. As soon as your children learn to count, you can begin teaching them how to count money. Practice playing simple games that they will enjoy. You could place a paper bill on the table and next to it place five coins. Continue adding coins in different denominations. Before you knew it, they will not only have learned how to count money but will understand its value as well.

One helpful tip is to include your children in shopping activities but always explain to them the purpose of the trip. Make it a point that to always tell them that going to the mall doesn’t mean that you have to buy something all the time. When you take them to the grocery, explain how to plan purchases in advance and make unit-price comparisons. Show them how to check for value, quality, and other consumer concerns.

My friend, a mother of three boys, once told me that she always try to include her children whenever she does certain tasks like grocery shopping. She would ask her children to write down the grocery list and make them in-charge of crossing out the items on the list. While making the list, she would ask what they think they will need for the week so they will feel part of the decision making. She also taught them how to look and compare prices and so there were times wherein they would stop her from getting one item because the other one is cheaper.

Most common scenario would be whenever the family enters a toy store; the children would always want their parents to buy nearly every toy. Parents can always tell their children that they are only there to look and play with some of the toys and that if they want something maybe they can save up for it for their birthday or Christmas. This can become an opportunity to teach them to set a goal.

Always talk to your children. Use simple words and calmly explain to them that money is valuable that one has to earn it to be able to buy something. That parents work hard to earn money. In the same way, if you can let your children work hard to get what they want. This will help them learn to value money as well as to be more industrious. You can tell them how to do simple jobs such as babysitting, cleaning out the house, selling different products, and among others.

Encourage your children to set aside a portion of their earnings. Give them a piggy bank or savings account. Give them allowance in denominations that encourage savings. If their allowance is 20 pesos, give them four pieces of 5 peso coins and encourage them to set aside one piece or two pieces of 5 peso in their piggy bank. Or if your children want new toy, you can teach them to save part of their earnings for that toy while still keeping the remaining for future use. This is also teaching them to understand the value of both short-term saving and long-term saving. Aside from teaching them the value of money, this is also a way for your children to discover what possession and ownership are all about. Remind them that the money they save belongs to them and that they should use their earnings for things they need and believe have value.

Set a budget. Tell your children that they can only buy toys and clothes on special occasions and within a specific budget. And perhaps if they have a special award from school, they may get the opportunity to ask for what they want in kind or in cash but always with limitations. Always make it very clear to them that buying should always be within certain budget.

Children learn what they are taught but they mimic what they see. If you struggle with money, you can work on your finances while teaching your children the value of money. A good education about money is one of the best tools you can give to your children. Perhaps one of the most important lessons in life to be taught at an early age is the value of money. The things children learn at an early age are deeply rooted and carry it on as they grow.

Teach them the difference between needs, wants and wishes besides teaching them to work, save, and to be wise purchasers. However, allow them to make spending decisions to let them learn from their choices. At times they will have bad choices where they can learn their lessons. Guide them about making choices before spending takes place. Explain to them why some things are better to buy than others.

They will soon find out that it takes a long time to make money and so they will be more careful in the future with their spending.