Teaching the Value of Money to Kids

Teaching Kids

The Value of Money

While capitalizing on the importance and value of money may not be urgent or something that needs to be hammered home as soon as possible, it is still important to give your children a leg up in their life by teaching them the proper value of money. There are many ways of doing this, such as:

  1. Games: Its easier to teach children when they are having fun, or perceive something as a game. Take advantage of this by encouraging them to use websites or other educational games that teach by using fun techniques. When your kids get a little older, there are simulation games that let them run everything from amusement parks to railroads to sports franchises. This gives them a good training on how to budget based on income.
  2. Allowances: An allowance can be another great way to teach your kids about the value of a dollar versus the perceived value of an object. This allows them to see that their work is being paid for and equate the purchase with with time spent to achieve the amount needed. It can also teach them to save up for a toy which will last longer rather then quickly spend it on things that won’t last.
  3. College Savings: As they get older and older it might be a good idea to share your budget with your teenager as if they need to apply for federal aid they will need to see the details anyway in order to know what to apply for. This doesn’t have to be a scary thing. Your child might work harder to pursue scholarships once they see how much college really costs. It might also inspire them to take their prerequisites at community college in order to save money and not come out with a mountain of loan debt.