One reason for parental frustration is that children want things without understanding that “money doesn’t grow on trees.” The dilemma of whether or not to explain money, bills and finances to children is growing as children get older and have more and more demands and needs.
Unfortunately dealing with money is not learning in school. Like many other life skills that we consider essential in adulthood, money management is also neglected, while a lot of energy is wasted by high math levels.
Tips for teaching kids about money and story
The first thing you need to do to teach your money about money is to explain the history of money. Tell them how people used to trade with their neighbors: “I’ll give you apples and you’ll give me carrots.” Then they realized that some things take longer to grow, so they decided that some things are worth more. This developed when they came to the market to exchange the things they wanted.
Pocket money: weekly or for household chores
Decide if you want to give your kids a pocket money every week or as a reward for doing homework. Stay at least once a week because the time perception of young children is not fully developed and the seven days seem too long for them.
If you choose to donate money based on homework, remember that you don’t have to reward your kids for the things they do for you. You can always reward them for the things they do for themselves. The “emotional strains” are a good reason to reward young children (and older children, teenagers, even adults …).
pocket money rules
When choosing to give a stipend as a reward, remember that all participants must understand the rules. Kids need to understand how much you give and why. If your child can read, make a list of tasks (and / or emotional extensions) with the corresponding reward.
Kids need to know what goes into the category, what they need to buy, and what comes from Mom and Dad’s budget. Think about this before you teach your money’s worth. You need to be clear about whether you are paying for food, school meals, candy, or whatever the kids are asking for. Everything you decide is good if you have a good explanation for yourself and stick to it.
Get a box for your child to put their money into. Any purse that doesn’t allow kids to take money is cruel to your child. The money is not to save it. There to use it wisely.
Sometimes less is more
Young children find it difficult to understand that one dollar is worth more than 20 months each. It takes time to understand that the value of money is not measured simply by the number of coins.
Have a wallet that your child will carry with them when they go out. When a young child picks up a wallet to go shopping, here’s the best lesson in money management. When you buy and your child asks you to buy things, report it to your wallet and explain what you can buy with the money you have.
If you go somewhere with your child and you don’t bring your wallet, take the opportunity to teach him how to borrow and let him borrow some money until he comes home. Lend them only the amounts they can repay, and make sure they repay you as soon as you get home. If they have their wallet with them, but they don’t have enough money and are asking for a loan, make sure they understand what that means.
The first time your kids lend, rejoice, because now you can teach them about saving. Only when kids want something beyond their means can you explain why saving money is a good idea. Always teach them to set aside 10% of their money. At a young age, they won’t understand what 10% is, but tell them it’s a small savings bank in the money bank you have there for emergencies.