How to teach kids about money

kids and money

According to Katharine Whitehorn, ‘The easiest way for your children to learn about money is for you not to have any.’ The question is, will you because of your children not work to earn money or not work to be rich? Though, there is an atom of truth in that saying; such that Bill Gates said, ‘That I was born poor is not my fault, but if I die poor, then it is my fault’.

Some parents have so made it that they did not allow their children to know how much they are worth so they won’t see the need not to work for their own money. Mark Zuckerberg said in his words that the only thing he owes his kids is a $10 million each. He also said the proper thing he owes them is education and he has given them; they should therefore make their own money.

Well, I would remain indifferent in this regard, I can’t advise that you let your children know how much you are worth, and I wouldn’t say you should hide your riches from them; all I know is that, if you teach your kids on how to handle money, you wouldn’t have a reason to worry unnecessarily whether you should let them know how much you are worth or not

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Our opinions are quite different and this should be respected, hence, this article will open our mind to the things we need to know and how to train our kids on the making and handling of money. So, what are the things we should let our children know about money;

#1 What is money and importance of money
This is one of the important points you must expose your children to and this should be taught between 3 – 5 years of their age. Let them know money is a substance used to get a value, good or services. Also, explain to them the different currencies we have and the different values of money we have. Further, let them know that money is one of the important avenues to get things done and quickly. Without money, your value in the society will be low. Let them also know that the money they get as gifts or anything can be exchanged for values and services. This will start to open up their mind for subsequent knowledge of money.

#2 Start to give them allowance
The best way to help a child know the importance of money is to give him the money. This will make them powerful and proud. This can start as early as 5 – 9 years. Let them see that they can also make money or possess money. This helps their money management skills. If possible, give them money at the start of the week, and tell them it is for the whole week. 

Don’t be surprised when your kid in the first two weeks spends the whole money for the week in one or two days. Yes, they will. When you didn’t give him money again for that week, reality dawns on the child that you mean business. That becomes the best way the child will learn how to be responsible.

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#3 Open a Savings account for them
Just between the ages of 9 and 13, your child can have a savings meant for kids in the bank. Let him know about interest and explain to him that the more money he saves, the more interest he makes and the more money he has. This will initiate some intelligence in him and will actually see the need why he should make more money. The money they get as gifts should go into these accounts and inform them of the growth in the account. 

Then, for the things they tell you to buy for them like toys and new clothes, tell them to save to buy it. Make it like a goal for them to achieve, let them save seriously from the allowance you give to them, you wouldn’t know how much you have helped them by this singular act till they are of age.

#4 Introduce them to Entrepreneurship
At the age of 13 – 15, the gadgets, clothes, electronics your kids use are more expensive than before. Also, the allowance they get increases. You spend more at this stage because everything they need is quite expensive even to their school fees. Well, you have to let them know they also have to help you in one way or the other even if you could handle it all. Let them know you can’t provide all they need and they need to start earning. 

Identify their interests, strengths and weaknesses. Introduce them to business ideas they can do that won’t stress them and would make them make little change to augment what you are giving them. Let them know that anybody can earn and make sure you support them in the path you laid their feet. Always guide them properly and let them know they can access you when they need you. They can as well help their neighbors or work for them just to earn a penny. After all these, you will need not to worry how they will manage your property when you are gone.

#5 Help them with a debit account and make them a manager
You have done the most part of what is required of you and finally, you need to make them manager of their own lives and destiny. You can’t be with them forever, so they have to learn now that they are responsible for their own lives. Open for them a debit account; let them have an ATM card, and teach them to run their own account both online and offline. 

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The previous knowledge you have given them will help them to manage it properly. You will need not worry much about what they are doing with the money unless you didn’t do an adequate job on the earlier points.

As an end, the acquisition of wealth is ignoble in the extreme; I assume that you save and long for wealth only as a means of enabling you the better to do some good in your day and generation’ - Andrew Carnegie 

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