7 Ways To Teach Your Kids The Value Of Money

Money is an important aspect of our lives, yet many parents struggle with age-appropriate ways to teach their children the financial skills they’ll need to function as an adult in today’s society.

Perhaps this is the reason that, overall, much of our population lack the financial skills to keep themselves above the debt line. Business debt, household debt, personal debt and credit card debt drags us all down, but wouldn’t it be great if our kids were the changing current in that tide?

Teaching your kids the value of money is not just a great thing for them and their future, but perhaps for the future of us as a group.

So, here are 7 pretty simple ways to teach your kids about the value of money.

1. Help Them Understand Want And Need

Ah, want and need. It’s the internal battle that rages whenever we come to consuming and purchasing decisions. Most of the time, it seems that need is forgotten for want, and consumer-driven through our economy is these decisions don’t always end up being the best for our personal finances. That’s why it’s so important to teach your own children the difference between want and need.

A good way to do that is to put into context the amount of time it might take to earn something that they want. For example, if your child does chores, like putting away the dishes for $1, explain that a new console game or toy will take so many times putting the dishes away to earn. And yes, it is ok to say no. As adults, we hear “no” all the time, and kids need to learn to hear it too. If they really want it, kids will find a way to earn it, and they’ll learn more doing that than if you just give them something.