How to Teach Your Kids the Value of Money

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By HowardBThiname
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Simple lessons teach kids the value of money.

How many times did you hear it as a kid? "You need to learn the value of money." And it was usually said in a stern, disapproving voice. Now that you're the adult, it's up to you to teach your kids the value of money, hopefully before they learn in the School of Hard Knocks.

Difficulty: Moderate

Instructions

Step 1

Children can look for sales and compare prices.

Start young. Let Children take part in shopping for groceries by making a menu and a grocery list. Write down the value of each item and let your child try to find bargain prices. If money is saved, use it to treat yourselves to an ice cream cone. Children quickly learn that there is a real value to spending frugally.
Step 2

Children learn the value of money when they are encouraged to take part in financial discussions.

Encourage school age children to take part in family discussions about money and choices. Children don't always understand why they can't have the same shoes Timmy has if you deny them the shoes with no explanation. Instead, show your child how much the shoes cost and compare it to something else of value - like the utility bill. Help them draw the mental link between money, necessities and wants.
Step 3

Even small children can contribute to the chores.

Give your kids jobs. A weekly allowance is nice but if your kids receive theirs without doing any chores, they aren't learning the value of money as a rate of exchange for work. Instead, they are learning that they "deserve" something for nothing. You owe it to your kid to teach him that earning his allowance is something to be proud of.
Step 4

Children learn the value of money by saving.

Help your kids establish a savings and checking account in a real bank. By the time a child graduates from high school, he should be able to easily navigate a bank lobby, order new checks, ask the tellers what the going rate on CD's is and know how to budget his money. If he grows up with this information at his fingertips, it comes natural later.
Step 5

Discuss finances with the kids. Just don't stress them out.

Get over yourself. Seriously. The days of kids being treated like second-class citizens are over. Today, children should be welcomed into financial discussions and they should be encouraged to open the paper to see what the markets did yesterday. Parents who demean a child who makes a comment about their finances aren't doing the kid any favors.
Step 6

Make earning and saving money exciting.

Instill a love of money in your kids. The love of money isn't the root of all evil. Not having money and doing bad things to get it is the root of all evil. Help your kids learn the value of money by instilling excitement in them for reaching savings' goals and earning interest on their money.