4 Money Tips for Kids
Teaching my children early on about money is really important to our family. While they do need to know how to add money and learn the value of money, they also need to learn a few other important things about money. Through the years, we are slowly learning different money lessons to teach. Here are our four most important money lessons:
1. Respect Money
Early on, we taught our kids to respect physical money. If you find a penny pick it up. If you get a dollar, keep it folded or straight – don’t crinkle it and turn it into a ball. Money isn’t a toy. It is to be respected. By teaching them to respect physical money they are learning very early on that money is something more important than a piece of paper.
2. The Value of Savings
Since I tend to be the spender in the family, it is really important for me to teach my kids how to save money. One example was when we decided to give them a challenge. When we were building our new house, our first house sold too quickly, so we moved in with family. Our children then did chores to help out and they got paid for them. We told them that whatever money they had saved when we moved into our new house, we would match it. This really taught them a valuable lesson. They could save $10 and would have $20 total to spend. Or they could save $50 and have $100 to spend at the end. It didn’t take long for the kids to realize, that if they held out on spending that money, it would be worth it in the end. Our once little spenders are slowly realizing how important it is to save.
3. Coupons are Cool
Since I love to coupon to save my family money, my kids know that coupons can get them their favorite cereal, but they didn’t really understand what a coupon did. That changed when my son had to buy himself a coat. Last winter my son lost his winter coat at school; we couldn’t find it anywhere. As a consequence, he had to buy himself a new coat. He had saved up $50 to buy himself a game and was really disappointed that he had to spend his money on a coat. We ran to our local store where coats were 50% off. Plus, we were able to print a coupon to save an additional $10. We were able to get a $50 coat for just $15! Our oldest son was amazed. He learned quickly that his money will stretch a lot farther by using sales and coupons.
4. Respect Your Property
This might seem like a weird money lesson, but respecting your property has everything to do with money. If you don’t take care of your property then you are devaluing the money that was spent on that item. For example, we buy our children all the clothes and shoes they need – even the clothing that they don’t need. But if they lose or destroy something, they are expected to replace it, just as in the story of my son’s lost winter coat. By understanding that they will have to replace items, they are learning to respect their property and their money.
These are our family’s money lessons that we teach our children on a regular basis. We believe that teaching these four principles early in life will set our children up for success.
What money lessons do you teach your children?