Children and Money
Is it important for you to train your children about the value of money? The answer is definitely YES .Children a ought to be taught from an early age on the basics about money.
Why train children on money matters?
Children need to understand from an early age that money is earned.This could be explained to them in terms of their parents have to leave the house daily to go to the workplace.
Failure to educate children on this could be one of the reasons why most children always conduct themselves in a manner likely to suggest that their parents always have money on them.Which is not always true.
Ever seen children who take money found in the house without asking for permission,or even to establish if it has already been designated for something else.It doesn’t matter how little the money is,this child needs to be trained otherwise,because who knows how much this child will take next.
It even becomes complex for children who think that ATMs machines spill out free cash,and that anyone can visit an ATM to get this “free” money. Such children ought to be made to understand how this money got into the ATM in the first place.
How then do we teach children about money? Tips
- Avoid buying or getting for them everything they ask for. Let them know that you need to be given ample time to save enough money to buy the items in questions.
It’s at this point that you as parent need to teach your child the difference between “needs” and “wants”.
- Teaching the importance of one living within his/her means. This will help reduce scenarios where your child will want you to buy for them stuff simply because their friends or a neighbor has that particular item.
- Use money a reward whenever they contribute to the household chores. More money can be given to those children who not only help around the house, but do so without complaining.
By giving them finances, I mean that you give them a box where these monetary rewards will be accumulated.
Once in while you can take your child for a treat by using his/her savings.
- Open a financial savings account for your child.
The main reason being, introducing a savings culture in your child at a tender age.
Children and money:Their responsibility:
Each child can be made to understand that they will be required to:
1. Identify something they would like to have bought for them in the next couple of days or months. Together with the child, visit a shop where these items are being bought to establish the price.
2. Allow them to take a certain portion of their allowances or earnings and accumulate them in a piggy bank. This should be at their own volition.
3. Keep a book to be used in monitoring the deposit against the monies required to purchase the item. You can allow your child to track his/her won progress.
Your role as a parent:
As a parent one of the ways through which you can enhance this savings culture in your child is by:
- Going with them to open a bank account. This should only be done after assessing the available packages.
- Inform your child that for every X amount they save from their allowances, you will top it up with a certain percentage.
- Rewarding your child for his/her good behavior or performance by topping up their savings.
- Engaging them in household chores that enable them earn some money. E.g. sweeping the compound.
This approach applies mostly to those parents who earn daily wage or own their own businesses.
If you are a farm worker, you can go to the farm with your child for him/her to see the hard work that you engage yourself in daily, in comparison to the wages earned.
- Teaching your child the joy of giving. This is a principle that should be applied by all in life including your child. The Bible clearly says, “Give and it will come back to you, good measure, pressed down, shaken together shall men give unto you.
This will enable your child to understand that it is in giving that they receive.
Do not delay any longer teaching your children how to handle money.