How to teach your kids the value of money? And how to encourage them to save?
- ninn09262Lv 61 decade agoFavorite Answer
I could go on and on about this because I can't stress enough the value of an allowance. Adults get paid a certain amount at a certain time, and most of us have to budget and save for the things we want. Kids need to be treated the same way in order to learn. But I'll try and keep it short and sweet! :)
Start by NOT buying your kids toys or any other thing that catches their fancy any time they want something. We only give toys on Christmas and Birthday, and if they don't take care of it, oh well, they're not getting a new one!
Give your kids a small allowance. A good guideline is 50 cents a week for every year of age. So a six year old would get $3.00 a week. Now that's not going to go very far, and they are forced to save it if they want something really good.
My daughter will save her money for months to buy that special toy, and because she knows how much it costs and how long it takes to save for it, she takes care of it.
I guess that's the short and sweet of it! LOL!
Good Luck to You!
- 1 decade ago
first question is how old are your children.
its best to teach them young.
i taught mine by taking them shopping to the super market and involving them in every aspect of that, starting with letting them see how much cash you have for to buy the thing you want for instance.
you know what you want and you know roughly how much it will cost, show them this.
then involve them in the shopping list or let them see that your making a list.
then of to the market, put them in the shopping trolley and hand them the things from the list so that they can place them in the trolley.
this will keep them interested in the shopping but dont deviate from your list.
if they see something that they want let them know that it is not on the list and you dont have enough money for this as you only have enough money from you wages to pay for the shopping
dont be suprised if you dont get a pleasant response the first few times you do this and a way to avoid it is to have something on the list for them already NO SWEETS OR JUNK.
when you get to the till get the child or children to help put the shopping on the conveyor when the employee has finished adding everything up hand the cash to the child or half each to the children and let them give it to the cashier. then make sure YOU get the change, this shows them the value of money and that you dont have a money tree growing in the back yard.
now on to the saving.
when you get home check the change you have from the shopping trip and take out the large notes and coins and leave the smaller coins if need be get the cashier at the till to give you smaller coins or notes.
make sure the child has a savings box or piggy bank that is always kept out of reach. give the child or children the coins or small notes if you in the states then dollar notes only but i do prefer coins, get savings boxes or piggy banks down and let the children put the coins in and then put the boxes back up out of reach (dont rush this job) after a while the child will realise that the boxes or piggy banks are getting heavy. this is not only when you go shopping you can give them change for doing good things at home. helping you with house work and choirs. but not for being good as this should be the case regardless and you can lead into all sorts of problems such as bribary by the child ie ive been good give me some money or i wont be good if you dont, make them work for it.
once this has been achieved, when they ask for something outside of birthdays, easter, christmas, let them count how much they have and let them purchase it themselves.
they now now how to save why to save and the value of money.
it is more difficult with older kids say over 8-9 but it can still be done. remember doing the shopping trips may be hard work but once they realise its fun and the change from the shopping trip is because they helped you.
when out shopping try not to use credit or debit cards in front of them as this does not encourage anything, all they see is a bit of plastic with no value that gets lots of thing. remember this point and use cash.
oh and keep away from branded goods as long as possible especially clothes and trainers /shoes kids its expensive and kids go through this stuff quicker than anything ive seen.
it realy does work i have three kids all now in school and i have no problems. it also helps with maths as well (BONUS)
pocket money/allowance i would say is for older children once they have learnt the basics but they still have to earn it!!!Source(s): LIFE
- Anonymous1 decade ago
be quite straight and tough with them, then go less but keep control until they've got it
- RimLv 61 decade ago
kids are innocent, they will have t handle tactfully, by the process of playing with them, telling good stories and tactfully.
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- (!)listenLv 51 decade ago