When you were a kid, did you care much for money?
Think back to your earliest memories. You probably knew money existed, and that it was required to pay for stuff, but the value of it probably wasn’t at the forefront of your mind.
It will have been located there for your parents, though, and if you’re now a parent yourself, you may be wondering how to teach your kids the value of money without scaring them or it resulting in a rip-roaring, peace-destroying argument.
Thankfully, kids are smart, and we think there are six brilliant ways to tap into their creative minds and teach them a thing or two about the value of money:
- Start paying for things with cash
We now live in a world full of cashless payment options, and while you may have fallen into the habit of using your credit card or smartphone for every day purchases, you might be giving your kids the wrong impression.
Think about it – every time you pay for your groceries, they see you tap a piece of plastic on a little machine. Magic!
Instead, combine modern apps that are designed to teach kids the value of money with a desire to pay for as many things as you can with cash, and show your children how real such transactions are.
- Encourage them to help with your shopping
Kids love getting involved in adult activities, and if you give them the chance to help you shop for something, they’ll jump at it.
It might be the weekly shop or the new TV you need to buy – whatever it is, involve them from the start and show them how you research, compare and make decisions when parting with your hard-earned money.
- Teach them how to plan for future spending
By using the latest technology and child-friendly financial apps, you can more easily promote the importance of saving, but the next step is to teach your kids how to plan future spending.
By showing them the process of deciding how to spend their savings, you’ll remind your children that, with enough money, they can buy anything they like.
Teach them to dream big and save more!
- Let them experience the bank
Just like those contactless payments, most modern bank transactions are carried out digitally, which means the traditional trip to the bank branch to pay in or withdraw funds has become something of a backup plan.
Again, playing on your kids’ inherent sense of adventure, show them what it’s like to visit a bank and pay money in. Take them to the clerk, and let them experience the process.
You can do the same with child-focused financial apps and online banking, but there’s nothing quite like combining the digital world with a real, bricks-and-mortar bank to teach a youthful, inquisitive mind the value of money.
- Introduce them to the earning experience
A great way to help kids understand the value of money is to offer opportunities for them to earn. Depending on their age, this can be done via jobs around the home or externally (when they’re independent enough).
Similarly, by setting up an allowance, parents will offer their children some ownership over their own budget, rather than viewing the money available as a transaction from the ‘bank of mum and dad’.
The tech of today enables parents and kids to track their earnings virtually, thus negating the need for a real bank account (which is handy if they’re particularly young). That said, there’s nothing wrong with buying your child a traditional piggy bank if you can use it to encourage them to save a particular amount each month, and set dates in the diary when you’ll open it together and count the rising funds.
Saving should be fun, and by combining the latest technology with the timeless methods of old, you’ll capture the imagination of your children.
- Spend time on math
Math and money go hand-in-hand, and once your children start school, it’s a great idea to start linking the two together. Ask them what they’ve been taught on the subject each day, and suggest playing games with money at home to practice the stuff they’ve picked up.
This is the type of homework kids will relish and their proficiency with numbers and understanding of the value attached to money should increase dramatically as a result.
You may assume that kids will find the process of learning the value of money boring, but if you use our tips above, you’ll quickly find that your children will relish discovering what those notes, coins and plastic cards really mean.
Thankfully, with apps like Kidibank at your disposal, there’s finally an easy way to have your kids’ bank and budgets at both your and their fingertips!