It is essential to teach children the value of money. You can start with that when they are very young. For example, give them pocket money so that they learn to bridge a period with a certain amount. Especially in times of cutbacks, it is crucial to make your children aware of this.
If you need to save money for your family, the spending pattern needs to be adjusted. In many cases, this means that you have to live differently with your family than before. Now the question is
How can you make your kids aware of the value of money?
- Put Words into Action and Set a Good Example Yourself
- Ask your children to think along actively
- Show your kids how to save on groceries
- Make agreements with your children about their own savings goals
- Remember that learned young is done old!
- Make them aware of what a currency is worth.
- Make them understand that pocket money is valuable learning money
- Teach them that money is not free
- Make Learning About Money an Educational fun
- Teach about the first saving steps
- Be sensitive teaching teenagers about money
- Tinker with teens’ financial know-how
- Financial knowledge is inadequate
- Give the education: Yes, but not only
- Do chores for them
- Find ways to stimulate student job
- Remember that talking helps
- Exemplify with corona crisis
- Teach counting: A child who can count can learn how to handle money
- Thrift is the mother of the money store
Here is how you can give financial lessons to kids
Put Words into Action and Set a Good Example Yourself
If you want, you can show your child what the money is being spent on. You give them insight into your ‘cash book’ so that they can see for themselves where savings can or should be made. This is dependent on your children’s age. Younger children are less likely to learn from this.
Ask your children to think along actively
You make saving their project in a playful way. You will see that they are happy to help and come up with beautiful ideas. That way, saving might even become a fun family activity!
Show your kids how to save on groceries
For example, ask them to look for the cheapest items on the shopping list when shopping. Suitable for the wallet, and they also playfully learn from this. Buy toys second-hand or borrow them. Your children will find that the fun is just as great with second-hand toys.
Buying clothes second-hand is also an option. Of course, you can also pass on clothes from your older children or nephews, nieces, neighbor children to their younger brothers or sisters.
Make agreements with your children about their own savings goals
Suppose your child spends a certain amount of his or her pocket money every month. Then discuss how he or she can save on this. For example, by skipping a month or looking for a cheaper alternative. This does not directly affect the savings you make as a family, but it does teach your child to deal with savings in his or her own environment.
It is not always nice to have to save money with your family, especially if it is necessary for a more extended period of time. But on the other hand, saving does not have to be too bad.
By saving, you can manage your budget better: keep the money instead of incurring debt. Either way: your children will only learn from this. And that does not have to be accompanied by a negative story to your child.
Remember that learned young is done old!
Experts say that if you learn to handle money consciously at a young age, you make better financial decisions as an adult. There are many ways to teach a child the value of money. Here we give 5. How do you best make your son or daughter ‘money wise’?
Make them aware of what is a currency worth
You will see your child load your shopping cart in the supermarket and then pay with your bank card. The fact that you hand over part of your wages in this way is entirely beyond him or her. That is why it makes sense to point out to your child the prices of the products on the store shelves. Let it compare so that it gets a picture of what everything costs.
As the next step, you can take your child to the bakery or butcher and have it pay for yourself with cash. The fact that the operation also involves some mental arithmetic is a bonus. Another great experience: a flea market at school or nearby.
Immediately an ideal opportunity to tidy up the nursery and see which cuddly toys, books, or toys can be removed. Determining a correct price for each object is by no means self-evident but just as instructive.
Make them understand that pocket money is useful learning money
You can gradually teach your child how to handle pocket money from the age of 6 or 7. For example, start with minimal amounts (1 coin per week is sufficient for young children) and give it more responsibility step by step.
Limit yourself to demarcating boundaries, but provide the necessary freedom to try things out. Experimenting and making mistakes is part of the learning process.
Teach them that money is not free
Paying for a job can be a great way to convey to your child that money ‘doesn’t grow on trees. Washing the car, tidying up the bedroom may be rewarded with a few currencies in the piggy bank.
Your child will then realize that he has to do something to make money. However, make it clear that everyone in the family must contribute to the household chores. Read: not every job is reimbursed just like that.
Make Learning About Money an Educational fun
There is still little that beats learning through play. Small children love to play shop, especially when a cash register and toy money are involved. As a ‘shopping’ parent, you can indicate whether the prices are fair and why you do not want to pay more.
A valuable lesson is in a perfectly safe environment. And why not get a board game where young children get to know the value of money? Such games often guarantee hours of fun.
Teach about the first saving steps
You can also teach children the value of saving by having them put money aside until a specific goal is achieved. As a parent, it is, therefore, advisable to take the financial education of your child to hear from an early age.
That way, it gets to know the value of money. Moreover, it teaches you to save for fun things in the short and long term and will also use money more wisely later.
Be sensitive teaching teenagers about money
Teenagers require a different approach. They already receive more pocket money and also spend more. Do you have a teenager in your home and want to teach him or her the value of money? Find some tips for teens here.
Teaching teens how to handle money can be a challenge. Still, they must learn that lesson well. This can give them financial benefits as adults. Learn how to make your teen money-wise here.
Tinker with teens’ financial know-how
The importance of familiarizing teens with money matters is essential.
Yet it appears that financial literacy among the population, and not only among young people, leaves a lot to be desired. Quite quickly, people are looking towards education to change this. Rightly so, of course, you can do a lot of things yourself as a parent.
Financial knowledge is inadequate
The annual European Consumer Payment Report shows that Belgians not only grossly overestimate their own financial knowledge, it also appears to be inadequate compared to other (European) countries. The problem is especially acute with young people.
Give the education: Yes, but not only
It is not surprising that education is mainly focused on turning the tide. Because here too it appears that our schools must catch up. In Belgium, schools account for 30% of the knowledge and skills that can be classified under the heading of ‘financial education,’ considerably less than the European average of 41%.
Nevertheless, this finding does not have to be a reason to give up as a parent. In what ways can you improve your teen’s financial knowledge yourself? You can give your teens pocket money and provide them with responsibility for managing it.
This will increase their knowledge of the social value of money. Children learn most from their own experiences.
Do chores for them
Why keep going to the car wash with your car when a teenager can get the job done? Or let older teens mow the lawn themselves? These are just a few of the many tasks he or she can do in exchange for a fee.
By having to work for that ‘chore money’ themselves, teenagers learn that making money takes an effort. They will automatically think more about how to spend it.
Yet there is a catch here. Not every household task has to be paid as a job, of course. Tidying the room or clearing the table is part of everyday family life.
Find ways to stimulate student job
By encouraging the somewhat older teenagers to take a holiday job, they obtain their own income for which they bear the responsibility.
Good agreements are in order here. How much of the earned money will be saved? Do they contribute to the house rent themselves? And do they have to accommodate you in purchases for their relaxation, clothing?
Remember that talking helps
Why should you, as a parent, have financial taboos? ‘Do you know how much that costs? The fact is that they often do not know and are completely unaware of the impact of a particular expenditure on the family budget.
Let alone know how much goes out the door for electricity and groceries every month. By the way, what is the impact of that much-loved vacation on family income? Often their ignorance in that area is natural, and no ill will should be sought behind it.
Exemplify with corona crisis
Almost half of the young people have financial problems as a result of the corona crisis. Figures from Febelfin indicate a link between low involvement and interest on the one hand and struggling with financial difficulties on the other.
But can’t the order be reversed here? Knowledge and involvement mean that people are better armed against the consequences of such a crisis.
Teach counting: A child who can count can learn how to handle money
From the moment children can count, you can teach them the value of money. Which products do you get for what amount? As soon as your child can also count, you can stimulate that understanding by giving them a few coins every now and then and making them pay for something.
By the way, did you know that many children think that everything is free? The use of smartphones and payment cards further enhances this impression. Only from the age of eight can children understand that there is money in the bank account.
Thrift is the mother of the money store
Teach your child that you have to save to spend money. Agree on short and long-term savings goals. You can provide different money boxes for this. And maybe also a piggy bank for a good cause? By making the piggy banks transparent, your child can also visually determine the effect of saving.
By the way, do not only focus on the amounts but also the agreements made about money. This is more effective than focusing on how much money you want to give your teen each week.
Do you know anything about investing yourself? Then don’t hesitate to introduce them to the world of equities and investment funds. Such knowledge can always come in handy later!
Important Things to Handle Money
How To Teach Your Child To Meet Deadlines And Set Goals?
Goal setting and planning are the anchor components of any process. And you can instill such abilities in a child, for example, set a goal together, break it down into tactical steps and follow them, periodically reviewing intermediate results.
Such a plan can be turned into an exciting quest. The child will develop the habit of setting goals and achieving them. Try to teach him to set goals for the day, week, month and track their achievement.
How to Handle Money?
Show your child how to handle money, what value it has what actions a businessman needs to take to learn how to multiply money. Also, to understand their value, a responsible attitude is essential.
For example, you can, together with your child, come up with a way to earn and accumulate, help playfully organize your own business, which will undoubtedly give you an understanding of all the processes of creating and implementing a business.
What you do is so much more important than what you say. Are you a conscious shopper? Or are you (a little too often) tempted to make an impulsive purchase? Are you deliberately saving before making that much-wanted large purchase? Informing teenagers is essential. But despite all the wise counsel of their parents, most of all, they will copy their parents’ behavior.
At the same time, your children can undoubtedly contribute to cutting back. But it is wise to realize that “children are still children” and not adults. They are still learning how to handle money, and their age is an essential factor in this. But saving is, of course, also part of learning how to handle money. And of course, also when it comes to saving: learned young is done old.
As with other financial matters, such as giving pocket money, it is also essential to discuss this with your children when saving money. If you involve your children in the right way, they will only be able to learn more from it.
Frequently Asked Questions
What skills do you need to develop in your child?
One of the most critical components in such a child’s upbringing is his natural development according to age-related changes.
Therefore, before developing, for example, logical thinking, it is necessary to develop creativity. This will help them in the future to naturally develop any skills, including business thinking.
Why Should Make Your Child Be Responsible For Their Own Actions?
Team sports, organizing a joint business with friends and family, will teach children how to work in a team, motivate, manage themselves and others, and be responsible for their actions in front of others.
On the one hand, playing sports is about winning. On the other hand, it is the ability to accept failure but not give up. Playing sports is suitable for developing intuition. Children learn to calculate steps and think logically.
Why Should I Allow My Child To Take Risk?
An entrepreneur is a person who can take a non-standard approach to solve various issues, take risks and be aware of all the consequences. These are monetary, reputational, and other risks.
An experienced entrepreneur is not at all one who was not wrong. Support ideas, even if they seem risky to you.