One of the greatest skills that you can actually teach your children is on how they could save and spend money wisely. There are people who knows nothing when it comes to saving money, and it doesn’t really go to well for them. So it would be so great for you as a parent to be able to make sure your children knows exactly how important it is to save and spend money the right way. Not every school focuses on this matter even if it is one of the most important things that a child should learn, so it has to start at home.
MAKE MONEY JARS
One of the best possible ways to start teaching your children about savings is to make money jars. This is where you basically have to get a decent size jar, that has a label on it that says, savings, spending, and sharing. This would now allow them to see that money is supposed to be managed at all times, and it shouldn’t be just spending, but saving and sharing as well. Children often get some money during their birthdays or Christmas, you can then teach them to put their money in jars.
Explain to your children that the savings jar is meant for something that they really want, like a video game, a certain gadget, or anythings they like. This would teach them to actually patiently wait for things and at the same time, teach them to have a goal that they will eventually reach in due time.
It would also teach them about discipline since they can’t really touch or get money out of the savings jar. The spending jars should always have less money than the savings jar, this is because the spending jars are for smaller things like treats or small toys.
This would teach your children how to manage their money since they can’t spend it all at once or else they’ll have nothing for some other time. And last but not the least is the sharing jar, this would teach your children to actually give some for others, it is the money intended for non-personal use. It would teach your children to be generous and unselfish. They could save some money for gifts to friends and family or even to the people who needs it the most.
PLAY GAMES
It is a fact that video games can be a little too addicting and can actually distract your children from school, but there is one advantage that would totally make you want to play with your children. Choose an age-appropriate simulation game that requires the player to earn money to be able to get certain things for the game. It may be a game but it teaches your children about trading and making money. It will be such a fun way for them to learn about, just make sure you guide them properly.
PROVIDE ALLOWANCE
According to research, the perfect age to actually start giving your children allowance at the age of 6-7. Start with a dollar a day, it would help them manage their money on an everyday basis, it would also teach them to be thrift and wise when it comes to spending.
Another way for them to get money is by doing chores at home, you just have to make sure to set rules and have a chart to actually keep track if they’re doing what they have to do or not. Be sure to teach them why people need to earn their money, as simple as possible so they wouldn’t be confused. Make them understand that money doesn’t just fall from the tree, it has to be earned, and it has to be spent wisely.
PROVE THAT MONEY DOESN’T MAKE THE WORLD GO ROUND
The most important thing your children can learn about money is the fact that it doesn’t make the world go round. Meaning, it may be important but it is not the most important thing in the world. Money can only buy material things, and there are far better things that money can’t buy. It cannot buy family and friends, it also cannot buy moments that you will cherish for the rest of your life.
Keep in mind that your children will do whatever the adults do, especially if they see it all the time. If your child sees you shopping using a credit card almost every week, he or she would think that it is so easy to get what you want with just a card. Be a good example for your children, especially when it comes to money
