Summer is a great time to help your kids learn the value of money. Sure, your kids probably know how to count change, but they may not understand the value of money or appreciate what it takes to earn and save it. Why not use this summer to help your children really understand how to earn and manage money. Even the younger ones can participate!
Chores are good old-fashioned and simple ways to start teaching children about the value of money. Choose little jobs around the house that your children can perform daily without a struggle. Because this really is an important lesson, be sure to provide plenty of praise. Bonus points if you can make it fun—let them play funky music or dress-up in silly costumes while they work.
Nothing beats earning money by doing something you enjoy. Enterprising youngsters often find meaningful ways to express their creativity, business-saavy, or sales skills. Simple things like a lemonade stand or a yard sale allow kids to learn about pricing, marketing, making change, and more. For the more enterprising or older children, consider helping them set up an online Etsy store to sell hand crafted items. Older kids might visit maker spaces to create prototypes of their own inventions.
If your children are not the entrepreneurial type, consider choosing a weekly amount of money to pay for jobs well done around the house. Explain how allowances work- you only are paid if you’ve done the work. Providing money without expecting some kind of work in return, even simple things, sends the wrong message.
Saving is the key lesson in money management. Encourage kids to save at least part of their allowance or earnings every time they are paid. Piggy banks are great for little ones – and savings accounts might be more appropriate for tweens and teens. Allow them to make decisions about what they are saving for, even if you disagree. The act of saving, in and of itself, is a great lesson.
This is the fun part! Spending is up to the child, but as a parent, you can help guide them—show them how to compare products by price, features, etc. Don’t worry if your kids buy useless junk a few times. Allowing them to make a few mistakes will help them appreciate the value of money.
Why not continue the earning, saving, and spending lesson throughout the year. Just continue to have fun with it and allow kids to make mistakes so they hone their money management skills. Kids who learn good money management skills are well on their way to managing their money as young adults and that is the most important lesson of all.
Nancy Parker was a professional full time nanny and she loves to write about wide range of subjects like health, Parenting, Child Care, Babysitting, nanny background check tips etc. You can reach her @ nancy.parker015 @ gmail.com