What to Teach Your Children about Money

Most parents feel the need to teach their children about money but are drawn back by the evasiveness of important elements. Whereas, considering the influence of money in our society, one should be proactive. Enough of depending on schools to help teach our children about money! Every adult would agree with me that the street sense of money mastery is not readily available in schools curricula. We lately realized how much self improvement we must engage in, to acquire financial intelligence. We need not perpetuate such laxity. Hence, here are few tips to demystify the elements of teaching our children about money.

Teaching Children about Money at Preschool Age

Not seeing physical money exchanged for purchases in a world of payment cards, mobile/internet banking and online shopping makes teaching children about money, a bit difficult. However, we need to make them aware of the value exchanges that take place whenever product/services are acquired. That could be achieved by using educational games. We could really make our preschool children know that:

• Money can be visible or invisible
• Visible money represented in notes and coins have varying values
• Money is needed to buy things
• You need to work to earn money
• It’s not everything you see that you should buy

Teaching Children about Money at School Age (Primary school)

At this level, we should take advantage of real life situations to teach children about money, its value and usage. Few examples of such situations include but not limited to the following.

• In Banks

During holidays, take your child along with you to a bank so as to be acquainted with what takes place there and how you are involved.

• Shopping at the Supermarket

Allow your children to understand the shopping intelligence required for wise spending in a store. They can participate in things like making grocery list, product/price comparison, efficient use of time while shopping, and so forth.

• Transactions at the ATM

When you draw cash at the sight of your kids from ATM, its important to make them understand that you deposited money in your account in the first place.

• While Paying Bills

As the family enjoy utilities, they attract bills. Try to involve children in knowing when and how bills are paid. By discussing how bills could be controlled with children, you’ll be teaching them a great deal.

• Family Budget

Budgeting is an essential aspect of financial intelligence. Children have a lot to learn when you carry them along.

• Managing their Pocket Money

Give your kids the liberty of paying for small expenses with their pocket or gift money. By doing so, they’ll start to understand the limits of money and how to master it.

Teaching Teenagers about Money (High/secondary school)

Prior to now, you have laid a solid foundation upon which you would erect the building blocks of money smartness in your children. Without that background, they may not pay the required attention if you just want to start teaching your children about money. The earlier, the better! At teen age, some of the advance money wisdom to impart in them include the following.

How to Make Money

Money is a medium for the exchange of values. Its more important to develop value

Money is made when you sell products

Money is made when you sell/offer services

When you save money for future needs at an interest

Discuss money making ideas and indices.

How to Increase Money

Money does not increase by keeping it, it rather devalues due to inflation

Know the layman difference between asset and liability. Money increases when you use it to buy things that will earn you more money. Money diminishes when you use it to buy things that will cost you more money

Have abundance mentality. Scarcity is caused by man, there is abundance in the universe

Discuss various investment types and opportunities.

How to Use Money

Use money as a means to satisfy your essential needs

Use money to buy things that add value to you, especially long term value

Give money to good courses that benefit the society.

How to Keep Money

Be frugal

Spend with budget

Avoid credit cards, don’t spend your future today

Save for future needs and emergency.

In a world that changes rapidly with attendant consequences, where having money or not having it determines behavior and tendencies, it is imperative to inculcate in the upcoming generations a solid money mastery intelligence. The time to teach children about money is now! It will go a long way in creating an ideal world we all desire. Parents, guardians and teachers should embrace this worthy responsibility of teaching children about money at their respective levels.

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