How to Teach Your Kids the Value of Money

Money doesn’t grow on trees.  That’s one fact which even most adults find hard to grasp.  Left and right, you’ll find people haphazardly spending their money as if they’ve just won the lottery.  They buy gadgets like there’s no tomorrow, and drown themselves in tall lattes from the nearest posh coffee shop.  If we were more cautious about our expenses the way we pay careful attention to the flyaways on our hair, then maybe we wouldn’t be so swamped in financial problems.

Before our kids grow up and get sucked in by all the consumerism, it’s good to start them early with good spending habits.   Here are some ways to teach them the value of money:

Grocery Game.  Before you head out for the supermarket with the kids, give them each a list of things to buy, and a calculator.  Ask them to find the lowest possible price for the items on the list, and the one who ends up with the cheapest total, wins.

It’s expensive.  When your kid asks you to buy him that cute Furby toy, tell him you won’t buy it because it’s expensive.  Give him a reasonable figure range for a particular toy, say $10-$20, and explain than anything beyond that is considered expensive.  Don’t say, “We can’t afford it“, because that tells your kid that if you could afford it, you would buy it.  You should make it clear to him that the reason you won’t buy it is because of its unreasonably high price, and not because you don’t have the money for it.  Just because you have money, doesn’t mean you should spend it.  It’s teaching him to make smart choices when it comes to buying stuff.

Piggy Power.  It’s time to bring out that dusty piggy bank and teach your kids to save.  Show them how dropping a dime into the coin bank each day goes a long way.  You can ask them what they want for Christmas, for instance, and encourage them to drop some money in the bank to save up for it.

It’s never too early to make your kids realize the significance of money.  More than learning about fractions and subject-verb agreement, it’s essential that they also learn how money has to be earned and saved.   The money lessons they learn now will serve them well into their adult years- and hopefully keep them from being buried in debt!

Important Lessons to Teach Your Kids About Money

While money is an enigma for many people, it doesn’t have to be that way. With the proper education, anyone can become a financial wizard. One of the best ways to become good with finances is to learn at an early age. Even if you think of yourself as a lost cause in the financial department, it’s not too late to pass on some wisdom to your kids. Here are some important financial lessons that you should try to teach your children.

1. There is a Difference Between a Need and a Want

If you teach your kids nothing else about money, teach them that there are differences between needs and wants. Many times, what they think they need is actually just a really superficial want. Do they need the latest pair of sneakers that cost $200 to look cool in front of their friends? Do they really need that pair of designer jeans instead of the ones that cost 1/10 the price? If you can help them realize the difference between what they need and what they want, they will be much better off later on.

2. Set Some Priorities

When you don’t have anything to work for, you’re probably going to be headed in all different directions. It is critical that you teach your child to have some priorities with his or her money. What do they really want to spend their money on? What isn’t that important to them?  Many people end up spending their money on things that they don’t really want to buy just because it’s convenient or because of an impulse.

If you want to make the most of the available resources, it’s important to only spend when it’s part of your priorities. Have your child sit down and come up with a list of things that are important to him or her. Then have the child create some financial goals to shoot for in the future. They don’t have to be huge goals, but they should definitely have something to work for.

3. Don’t Pay Full Price
In today’s society, no one should buy anything without doing a little bit of simple research to make sure that they’re getting the best price available. With a smartphone, you can quickly look up the price for something while you’re shopping. For example, let’s say your child wanted to take up golfing, you would then show them how to find GolfNow.com coupons when they’re interested in buying golf supplies.

Also, with coupon codes for GolfNow.com, you’ll be able to get the golf supplies you want at a much cheaper price than you would normally pay. Show your child how to look for sales and other discounts that they can take advantage of. Show them how to buy some things used, so that they don’t have to pay the higher price just because something hasn’t been used before.

4. Live By Your Word

Teach your child to live by his word when it comes to financial issues. If he promises to pay for something, he needs to do it. You should teach this by giving them a good example. For example, if you start giving him an allowance on Saturdays, make sure that you give it to him every week on Saturday. If you get in the habit of putting it off or you regularly forget about it, your child will think that it’s alright to do the same thing when they get older. With a little bit of discipline, your child will be able to develop good credit and work toward the future more effectively.

With these simple lessons, you’ll be able to help your child get off on the right foot financially.