Teaching kids what they need to know about money

Let your kids know what is what in terms of money.

12:48 29 October 2014

Kids may wheedle and plead to own something they think at the moment they cannot live without, and parents lest they give them the wrong message, should learn to say no.

 

The following tips can help you properly instruct your children about money:

 

• Make use of cash so your children can appreciate money’s worth and what it can purchase.

 

• Involve them in games that will give them a hands-on experience on activities that need to use money such as monopoly or playing store where they can acquire items and pay them with play money.

 

• Bring them with you when you go about your daily routine that involve cash transaction such as shopping or acquiring services paid for in cash.  You can explain to them in simple terms how money can be used wisely and foolishly.  You can share your own experiences and how your choices (right or wrong) have affected your life.

 

• Allow your children some degree of financial leeway by giving them their entire weekly or monthly allowance and the freedom on how to spend it. They can work on how much they will spend for school lunch, clothes, sports, reminding them that they have to stay within that budget because there will be no replenishment coming until the next week or month.

 

• Let your kids know where most of your money is spent on, such as payment of utility bills, mortgage, and personal items such as clothes, gadgets and food.  If you have set a budget that involves them, such as food or entertainment budget, they should be aware of that.

 

Practice what you preach- Be the model for wise spending.  Make them aware of how you make your choices on where to spend your money, emphasizing on the fact that you do not buy everything you want regardless of how desperately you want it.