When you teach your child the value and importance of a dollar, you are preparing them for real world financial scenarios, like buying a car, or hiring a luxury home marketing specialist. These teachings can help them throughout their lives. Here are a few ways you can teach your kids about money and financial situations.
Explain Financial Obligations and the Importance of Hard Work
From doctor appointments, to taking care of pets, there are financial obligations that you should explain, in detail, to your children. Tell them why you work, why it is important to work hard, and explain the importance of paying bills diligently and quickly. Explain that working hard allows you and your family the freedom to enjoy more things and take care of others.
Give Your Children Freedom Over Minor Spending Decisions
Set aside finances for family activities, such as dinner at a restaurant or a trip to the movies, and allow your children to make those decisions based on the cash you have accumulated for the activities. Ask them to divvy out enough money for the activities they want to do. Then have them explain how much everything is and how much it will take to do everything they want to do for that day.
Bring Back Weekly Chores and Allowances
Some modern parents have done away with regular chores and allowances, but both things teach your kids finances and independence. Make a chart of chores, such as cleaning the kitchen and making the beds, and use a sticker system to keep track of the chores they complete in a week. Set a dollar amount per chore, and pay them an allowance according to the chores they did to earn their money.
Ask Them to Contribute to a Savings Account for Their Future
Encourage your kids to set aside 10-percent of their weekly earnings towards a savings account. Of course, you are already contributing to the same savings account, but they can help accumulate money for their future over time. You could even encourage them to donate a portion of their earnings to those in need, like at a homeless shelter, soup kitchen, or animal hospital. Not only will they learn the value of a dollar, but they will learn to have compassion for others. While you teach them about money, you should also instill in them that money, while important, isn’t everything.
When you teach your children the importance of a dollar, you are helping them prepare for real world finances in their future. This is a great way to bond as a family as well, since your kids will feel included in major financial decisions.