Money is an essential part of life and it’s never too early to teach your children its value and the importance of saving. This will help them to understand the importance of spending money wisely and sensibly. Three and four-year-olds are starting to develop the cognitive skills necessary to understand basic monetary concepts, such as identifying coins, figuring out how to count change, and matching small amounts of money to items they want to buy. Learning the principles of responsible handling of money should give them many opportunities for advancement when they are older, which is why it is important that, even at a young age, children cultivate a respect for money. Here’s how you can teach them the value for money:
- As your child learns to count, you can demonstrate the relationship between different values of coins. Also, children like to play games that involve fake currencies and saving and spending. Allow your kids try some of the online games that teach money skills. It’s a good way for them to learn the role of money
- Get your child a piggy bank. This is a simple action that will teach your child the importance of saving and will instill a sense of responsibility towards handling money. Give them small goals to achieve in a particular time frame. Encourage them to earn the money towards fulfilling their goals
- Encourage your child to make little money. Earning money is not only educational but empowering for kids. Kids can follow the pretty simple idea of earning pocket-money like, helping elders with their daily chores.
- Encourage your kids to plan how to spend their savings. It will make them understand that with more savings they can have bigger goals fulfilled
- Give your children their own allowances when you go shopping. Educate them on sensible spending and explain the priorities when shopping. Remind them that at the end the day, the most important thing is that they can buy what they want because they were able to save money in the piggy banks
- Familiarize your kids to the bank and open savings accounts in their names. Let them talk to the teller and conduct their business themselves. Make sure they understand the terms and conditions of the account and suggest they commit to depositing regular amounts on a weekly or monthly basis. Having their own bank account will give your children a feeling of achievement which could even motivate them to save more
- Lastly, kids tend to learn more from what they see around them. Being parents, your attitude toward money, the way you handle it, makes an impression on your children just as surely as your attitude toward other personal matters
We hope that these steps will help you to give your kids a quick understanding about the value and importance of money.