Numerous studies show that it is very important to teach young children about the value of money. By the time they are age seven or eight, they have a fairly set concept of what money is and how to use it. So, you really do need to start teaching your children about money as soon as they are able to count.
As they grow older, these lessons need to change and become more complex. Below are some easy ways to teach elementary or middle school-aged children about the value of money.
Teach by example
If you have opened something like a Wealthify junior ISA for them, now is a good time to tell them about it. Share with them why you opened it and what you hope they will use the money for.
Keep them up to date with what is going on with their savings account. This opens up the chance to talk to them about money and family finances in general. They will also be able to see how easily a pot of money can grow in an account where a reasonable amount of interest is being paid.
Get your children earning
Start getting your children to earn some of their money instead of just giving them all of it as pocket money. Paying them to do a few chores around the house is a good way to do this. It will help them to understand that to get the things that they want in life, they will.
Help them to learn not to impulse buy
Around this age, you can start to get them to stop and think before they make a purchase. There are two main ways to do this.
The first is to get them to use their allowance to buy some f the items that they don’t really need. Or you could say to them something like “You can have it, provided you make a contribution. But, I think we should wait until tomorrow to buy it.” You will be surprised by how often they will decide not to go back and buy that item. Giving them the time to reflect usually they realize that they do not really need or want it.
Encourage your child to give to others
Once your child has enough money to do so, encourage them to start thinking about others. Ask them to consider putting some cash aside to give to someone who is in need.
Giving to others helps them to think about what their life would be like if they were also short of money. As a result, they appreciate and look after what they have better.
It also demonstrates the power having savings gives them. Later in life, if they want to say no to that awful job they have been offered they will be able to do so because they can live for a few months on their savings.
They will also appreciate that giving has its pleasures and benefits. Learning this lesson early will help them to grow into generous and balanced adults. As you can see from this science-based article, it is a habit that will benefit them in other ways, as well.