The Concept of Money
While you do not expect your kids to manage anything involving money any time soon, still it is a good idea for you to find ways of teaching kids about money. These teachings will allow your children to understand the concept of money. They will learn how to value spending and build an idea of how to save money. If you teach your kids such things at a young age, they will appreciate the notion of earning, saving money, and spending wisely. While you do want to teach your child these concepts, but you should keep things light as you do not want to overwhelm a young mind with complex lectures on the origin of wealth and the channels of earning. Instead, keep the learning fun, and slowly help your kid learn the concept of using and handling money. Here are some tips that will help you with teaching kids about money.
Start with a Piggy Bank
Get your kid’s attention by giving them a piggy bank to save the money you give them. Later you can tell them that they can use the money to buy toys or sweets. This way of letting your child collect money will allow him to understand the concept of money and how saving could help. However, you can make one small tweak, instead of the piggy bank that you cannot see through, look for the new variety of the piggy bank that comes in glass, so your kids have a visual of the saving.
Show By Example
Next time you go shopping and have your kids with you, show them when you make payments and teach them the concept of paying to buy things. After some time, allow your kid to make the payments for the grocery in your presence. These small exercises will teach your kid about the value of money and how to spend it on things that you need. Children are quick learners and fast observers, and they will begin to get the concept of money if you allow them to use it in your presence.
Teach them the Concept of Charity
Show your kids how to use the money to help others by giving charity to those who are less fortunate. Make it a point to have your kids with you when you pay for any charities. Your kids will learn what good things they can do with money.
Set Small Allowances
Start giving your kids some allowance so they can start collecting and spending the money. Give these allowances in the form of a commission of doing anything useful. For example, if your kid cleans his room, give him a small commission. This practice will allow your kid to understand the concept of earning by doing some good work.