As parents, we want to do everything we can to help our kids get the best possible start in life. One of the most important things you can do to help them get off on the right foot is to teach them to respect and value money.
- Talk about money with your children as they often see you spending money and getting money from an ATM, but they don’t see the monthly bills and other expenses. As a result, children develop a perception that money is easy to come by and don’t understand how it needs managed. When appropriate, sit your children down when you are balancing your chequebook or paying the monthly bills. This will give them a broader view of how money is earned and managed.
- Pocket money will allow children to practice saving and spending money, and is a great way to teach them how to be responsible with their money. Spending money all at once and losing money is part of the lesson most children will go through in order to develop financial care in the future.
- Provide the opportunity for your kids to earn money – Children should be accountable for the regular daily chores around the house – making the bed, watering the plants, washing the dishes etc. However, for those tasks outside of the day-to-day running of the household, you should create opportunities for your child to earn a little extra pocket money.
- Take your children grocery shopping – Get your children involved in identifying grocery items and how much they cost. This will teach them how smaller priced items can quickly add up to a much larger total.
- Set up a savings account for your child – Maintain controls, which you govern (like when they can make withdrawals), but let them see their deposit book or statement regularly, particularly when interest is credited. This will teach your children about rewards and saving.