Value of money for kids
It’s important to teach young kids the value of money. It’s better to start them off young so that they’re able to independently take charge of their finances when they grow up.
Kids begin to develop cognitive skills around the age of 5, meaning they’re able to identify what money looks like. They’ll begin basic arithmetic at school, learn how to count and even begin to develop likes and dislikes. So what better time to teach them about the value of money and saving it?
Here are some simple ways parents can help their children learn about managing money.
Explain to Them How Money Works
Explain to your toddler that money is earned in return for hard work. You perform a job for your boss, and in return, you are paid. Explain to them what a bank does, too. You could use this super cute money box to explain how a bank stores money and how we can retrieve it via an ATM.
Explaining facts like these to your children will open up a dialogue for an honest and open conversation.
Help Your Child to Build Money Skills
Making your child understand the value of money can be a little challenging, but that doesn’t mean it doesn’t have to be fun. You can introduce cashier toy sets to your toddler to teach them the process of shopping for products and how you pay.
It’s also a great opportunity to explain to them how pricing works. You can even build a game around this!
Give Them Some Independence
Give your child a small allowance to teach them the value or money and saving money, too. Explain to your child that money doesn’t have to spent entirely in one go. Instead, teach them that the money can be kept away in a cool boat shaped money box to spend later!
This will help your toddler experience how spending and saving work. Encourage them to track their expenditures, too – here’s a cute stationary set to make that fun.
Of course, a toddler can’t get a legitimate job! You can further teach your toddler about the value of money by encouraging them to help you out with chores to earn some money.
Not only will this instill discipline in your kid, it will also explain the concept of money much better to them.
Be Open to Questions
Kids at that age are very curious. In fact, toddlers ask an average of 300 questions a day! Having an open dialogue about money and letting your child know you’re there to answer questions honestly is a good way to encourage healthy monetary habits.
Looking for ways to start up a conversation about saving money? Introduce it to them with a small gift – check out this classy money box they’ll be super excited to use!