You may think that teaching about money at an early age is not a good idea, but the earlier the orientation is, the better.
Parents can just teach their children the basics of having and using money – you don’t have to bombard them with complicated computations. Teach them the four pillars – addition, subtraction, multiplication, and division. And of course, saving. Start with their monetary gifts that they get during birthdays and holidays.
Give them an allowance every week when they start school. See how they manage $10 on a 5-day basis. Then make your financial ninja moves.
To help you get started on teaching your little angels about money, read on for the ways:
Money is earned, not given
They will be given money until probably they’re in their adult years, depending if they land a job immediately after graduation. Nevertheless, even if they will be handed with money, they have to earn it. Teaching them that money is earned, not a privilege, will instil in them a sense of hard work. That they have to make an effort to be worthy of being handed over with money.
Money should be saved for the rainy days
As parents, you have to let them know that money is not a renewable resource, like water or air. They will run out. Teaching them to save money for unexpected events like loss, hospitalization or accidents and even death will make them realize that life is a combination of unexpected good and bad stuff. And that we need to be prepared for the bad stuff.
It’s good to have money, depending on how you use it
Let them like money, not love it. And that money is pretty good if you know when and how to use it. That it is meant to be saved and spent on a simultaneous basis. That it should be spent on significant things, but there’s no danger in splurging once in a while, not all the time. Let them be aware that money can only do good if you use it the right way.
There are more important things in life than money
Ultimately, teach them that the best things in life are just, really free. You may have to spend a thousand dollars for a luxury vacation, but it won’t matter if the family is incomplete or that not everyone had the time of your lives. Imprint in their brains that happiness cannot be bought, this way, they will not heavily rely on having money to smile or appreciate life and family and friendship.