How to learn your child about the value of money

Money is something we take for granted, forgetting that, while we were growing up, we didn’t understand a thing about papers and coins.

Children of today don’t see much cash because of credit and debit cards, and of course, internet banking. That’s why they understand even less about the value of money.

Talk to your children about their needs. When they grow up, there will be even more virtual money than nowadays and that’s why they need to know that they can spend only as much as they earn and/or save.

One more good example are pre-paid phones. Children should learn how to spend their credit. If it happens that your kid spends the credit before the end of the month, of yourse you can borrow him some money to buy more credit BUT you will deduct it from his next month’s allowance. Not because you are cheep but because you want him to learn.
When your child reaches that age where he/she can have some king of a job, encurage him! It’s is also good for making working habbits. Plus, he/she will feel more important when he/she earns some money.

4 year old child can differentiate the coins, and it would be great to take him/her to, for example, bakery – it’s one of those places where we still use cash. A kid will be very happy and proud if you give him a chance to find the coins in the wallet and buy a loaf of bread on his own. Let him buy a danish the next time – that way he will learn that not all the things cost the same.

If a child knows how to count, you can increase his responsibility by giving him a small weekly allowance. The amount of money will increase as the child is growing up, but the point is, the child should learn how to spend that money wisely, during the whole week and not all in the same day.

Children will learn two important lessons. One: we need the money to buy our daily bread. And two: if we put some money aside, we can buy something that is not essential – a treat.

One more good example are pre-paid phones. Children should learn how to spend their credit. If it happens that your kid spends the credit before the end of the month, of yourse you can borrow him some money to buy more credit BUT you will deduct it from his next month’s allowance. Not because you are cheep but because you want him to learn.

When your child reaches that age where he/she can have some king of a job, encurage him! It’s is also good for making working habbits. Plus, he/she will feel more important when he/she earns some money.