Early in life, children should get the idea of how money works. They should be made to understand that it literally does not grow on trees or appears magically from an ATM. Your children should know that money is earned and should be handled responsibly. Teaching your children about finances is a long and tedious process. It also requires a great deal of patience to answer the infinite questions they may have regarding money.
Here are 3 activities that will help you help your kids learn about money.
1. Piggy Bank
The first and most essential step that your child needs to learn is that money must be saved. They must realise that money grows in small increments rather than coming as a windfall. Teach them to put their savings in a piggy bank and when they collect a considerable amount, they can buy an item of their choice. This activity also teaches kids to safe keep their money.
Fix a monthly allowance for your school-going child and tell him/her that they should pay for all their (little) expenses from their pocket money only. This teaches children to not waste their money unnecessarily. Ask them to make an expense sheet, or use an app for that purpose, so that they learn to record their spending. This way, you can monitor where your child has been spending money and teach them how to cut down their expenses and save money. This also teaches children the importance to maintain an account of what they buy, as it will come in handy later in life.
3. Make Them Earn Money
If your kids ask for extra money, make them earn it. You can do this by giving them money in exchange for doing some tasks that are not part of their daily routine. Ask them to help clean the house, mow the lawn, clean the car or help in the kitchen. This way, they learn that money does not come for free, and will learn about the general principle of earning money and respecting it.