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How to Teach Your Child the Value of Money (2)

Written By: admin on September 25, 2009 No Comment

There are many ways in which you can make an influence on your child and help them to have a healthy relationship with money. In the world we live in it is important to understand money and to be able to handle it well so that we can have easier and stress free life. Here are some more tips regarding the ways in which you can teach your child the value of money.

1. Honesty is the best policy

You must always be prepared to talk to your child in an open and honest fashion about your family’s finances. This doesn’t mean that you have to go into details, but if you have some financial problems and your child is old enough to understand that there is something going on, you have to present your current situation together with measures that you are taking in order to improve situation. You can ask your child to help you and figure out the way how your family can save some money. Children are very creative and you might end up being surprised by some fresh and useful saving ideas. You must always take into consideration age of your children and provide adequate information. Important thing is to maintain sense of security and tell them what might happen in the future, for better or for worse, but to give out information that is age appropriate. For a very young child there is less peer pressure, and for older children it might be more difficult to accept that they might not be able to keep up with their friends with regard to new electronic devices or fancy clothes. On the other hand, older children might take a part time job in order to fulfill their needs and wants, and make it easier for you to handle the financial burden. Hiding a difficult situation from your kids is not a good idea since they will feel that there is something going on, and you should always be honest and treat your children with dignity.

2. Don’t be scared admitting that you are sometimes wrong

Nobody is perfect and as a parent you are bound to make a mistake or two. Also, in financial matters parents are not imune from bad financial decisions. When they are old enough to understand and be able to grasp concepts, share with them what you have done wrong in the past or why your finances are not very bright today, and explain how you are planning to make things better. Allow your children to prepare monthly budget together with you and to participate in your decisions. Help them to grow up to be responsible people and to learn from your mistakes. Trying to hide your mistakes from your children might end up in them repeating the same mistakes on their own.

3. Saving money can be a game to play

Game is important to children and one of the easiest ways in which you can teach your child many important things is by introducing an element of the game. For instance, you can take magazines and play game in which you have to find bargains, coupons or something similar in those magazines. Who finds more savings in magazines is the winner. Or, you can play a piggy bank game in which every member of the family will have their own piggy bank and try to fill it with coins during the month, not only with their own coins, but also coins that you can find lying around in the house or on the sidewalk. Whoever wins, will receive a special gift. With this, your child will learn how to spot good deals and collect money and coins, and in adult life it will still be a funny activity which will boost savings. When playing these games it is very important to allow your child to win sometimes (but in a dignified way), or they might lose interest.

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