It’s not always easy to get your children to appreciate the value of money, however it is an essential skill that they must learn as they are growing up. Imparting good savings habits while your kids are young is a great way to prepare them for the financial challenges that they will face later on in life.
Here are 4 great ways to teach your children the value of a dollar, and how to appreciate and respect money.
Introducing Pocket MoneyGiving your kids pocket money is a great way to introduce them to the world of money. To make the most of the experience, you should create a list of ways that your kids can ‘earn’ their weekly pocket money. Whether it’s completing homework on time, helping with the dishes or completing a list of jobs, your kids will appreciate their money a lot more when they know that they have worked for it. When you just give them a weekly allowance regardless of their behaviour or contributions to the household, you diminish the value of money and restrict their understanding of how finances work in the real world.
The Magic of SavingsMany banks offer junior savings accounts where kids can be rewarded for the money that they save. Often, parents encourage good saving habits by co-contributing to the account. When your child makes regular deposits into their savings accounts, they will feel a great sense of pride and accomplishment as they watch their balance grow.
Essential BudgetingWith your children now versed in earning their pocket money and participating in saving, you can move onto the next step and begin to teach them about budgeting. To truly appreciate the value of money, have your kids sit down with you and explain to them how a budget works. By starting early you can ensure that they understand that big purchases have to be saved for, and that it is always a good idea to have extra money aside for emergencies. Without a budget, your kids won’t truly appreciate the value of their money and what it means in the long run.
Lead by ExampleIt’s hard to try and educate your kids about the value of money when you’re struggling with your own finances. Children are remarkably perceptive, and look to their parents as a source of guidance and inspiration. If you’re having trouble with your budget or experiencing problems with debt, contact the professional team at Fox Symes and see how they can help you to strengthen your financial situation. Being a good role model is an essential aspect of teaching your children to use their own money effectively.
By taking the time to show your children the value of money, you are setting them up to be financially stable as they grow up. Just remember that if your own finances aren’t quite in the best shape, contact Fox Symes for debt help and budgeting assistance that will make a real difference to your everyday life. Be an example to your children, and give them the very best financial start in life.
This article was written by Emma Davies.