It’s important to teach your children from an early age about the importance of money so they grow up to have a value and respect for it. Despite learning the basics about how money works in school, the best way a child will learn to have respect for money is from their parents. Follow these tips to help your kids develop a lifelong value for money:
As soon as children are able to count, introduce them to money. Take an active role in showing them the different coins and notes and telling them what they are called. Repetition and observation are the two methods they will learn by.
Communicate with children as they get older about your values concerning money and how to save it, how to earn it and most importantly of all, how to spend it wisely.
It’s important that you ensure your child also understands the difference between needs wants and wishes as this will give them the knowledge to make good spending decisions in the future.
Another key concept to help young people learn the value of money and learn how to save is to set goals. For instance, every time your child asks you to get a toy or another desired object for them, make the request the object of a goal setting session. Setting goals will help children learn how to be responsible for their own futures.
If you give your child an allowance for doing household chores, give the money in denominations that will encourage your child to save. For example, if the amount is €5, give your child five €1 coins and encourage that at least one euro be set aside in savings. It might seem like very little but starting at a young age and saved weekly, it will add up! As your child gets older, the amount they save can be increased.
Take a trip with your child to a credit union or a bank and open a savings account for them. It’s important to begin the habit of regularly saving when they are young. Try not to always say no when they want to withdraw money from their savings accounts for a purchase as this may discourage them from saving at all.
Take advantage of regular shopping trips to teach your children the value of money. Grocery shopping is often a child’s first experience of spending money. Teach your children how to get value for money, how to plan economical meals and use leftovers efficiently.
Read more: Saving for your child's future
