10 ways to teach children to spend money wisely
School age is the perfect time to teach children about spending because they are learning addition, subtraction, multiplication, and division at school.
Children should learn how to spend money wisely at an early age. School age is the perfect time to teach this, as this is when they are learning addition, subtraction, multiplication, and division at school. Parents can use this opportunity to teach their children how to save and spend. As they get older, they will learn to make their own decisions about money, such as spending their allowance or helping their parents budget for vacations.
Parents can refer to the 10 tips below.
1. Play spending games
Monopoly and Life are fun ways to teach your kids about money. Play your favorite board games with your kids and help them develop their money skills.
2. Take your child shopping
 |
Routines like taking your child to the grocery store can also teach them how to spend wisely. Tell your child how much money you have and play games buying things within the budget. Give them coupons and let them find items on sale. If your child is 9 or 10, you can use a calculator to see how much the family has saved.
3. Give your child pocket money
When children reach school age, they start doing chores to help the family. You can set rewards for chores to help your child develop the habit of managing their own expenses.
4. Encourage your children to save
Use a cute piggy bank or Hello Kitty wallet to help your child keep track of their money. Experts say parents should give their children three different wallets – one for savings, one for spending, and one for donating. Then, together, the whole family can decide how to divide their child’s allowance into the three jars.
5. Deposit money in the bank
Take your child to the bank and set up an account for him or her, then explain to him or her that if he or she leaves money in the bank, it will grow.
6. Teach your children how to talk about money
A child is very curious about how much a house is worth and how much money a person makes each month. These are innocent questions, but children often do not understand the meaning of money. Gently remind your child that it is not appropriate to ask how much money other people make or spend.
7. Limit the time your child watches TV
Children are exposed to a barrage of advertising in a short period of time. Even adults find it hard to resist, so how can you expect a 5 or 10 year old to be immune to the flashy new toy?
8. Explain the functions of credit cards and ATM cards
Children often mistakenly believe that money comes from ATM cards or that you can only use a credit card to pay for things. Even older children may not fully understand the meaning of credit, so parents need to teach their children the basics of using a card.
9. Be a role model
Children watch their parents' every move. Never lie to your spouse about your spending. And when you make a purchase, teach your child that material things don't always bring happiness. Remind your child that there are things more valuable than money, like being with your family.
10. Teach your children about generosity
No lesson about money is complete without a discussion about charity. Teach your child to be thoughtful about spending by showing them that there are things that are more important than money, such as family and love for others.
