One of the hardest things to do is to teach kids about finance and get them to truly understand the value of a dollar. Most kids today want to get that instant gratification to feel better about themselves. They want that hot electronic toy or that brand new video game that all the cool kids have. Very few children appreciate the value of the dollar because many parents fail to teach their kids how important it is to be careful with your money. As a result, many of us grow into financially irresponsible adults. Many parents can teach their kids a few things to get their children on the right track:
Have Them Do Simple Chores for Cash
Instead of just handing an allowance to your child every week, make them earn it by doing simple chores like helping make dinner or taking out the trash. These little tasks can make a big difference in the self-esteem of the child and can really affect how he/she feels about money in the long run. Many parents don’t think about the implications of just handing your child money every month and what kind of message it sends. Teaching children the value of hard work can be as simple as assigning them a task for a few dollars.
Show Them the Value of a Dollar
Many children just see money as something that people get without working for it. The constant barrage of media attention of wealthy celebrities flinging cash around as if it were nothing is certainly not helping things either. Show your children that you can provide for them because you go to work and bring home a paycheck. Explain to them that average people are able to thrive and survive because of working in the economy and by bringing home a paycheck. Celebrities may be able to make millions by doing mundane things but most people can’t do that. Explain to your child that there is a difference.
Encourage Them to Play Financially Educational Games
It is great to play games that can also teach children how to count and realize the correct way to spend. Many children learn better when there is an element of fun attached. There are many educational games online that help children save and can teach them vital money lessons such as understanding the stock market. Many think the stock market is some magical force that only rich people use to get richer. The truth is with a little amount of knowledge, the unexpected can be a path to help secure financial security. All it takes is a little effort from a caring parent.
Most parents want the best for their children and would do anything for them. Despite this, many people overlook the obvious benefit of teaching children how to handle money. The truth is there is just not enough being done to teach our children the value of money. This can lead to disastrous consequences later on. Give your child the promise of a better future and teach them about finances. It may be one of the most important things they can ever learn.
- Natalie Alex