Parents Teach Children the Value of Money and to Save

We all know that children learn the most important things from their parents.  If we budget and save money our children will learn with a little encouragement to follow by example.  It is the responsibility of parents to share the lessons we have learnt the hard way, from our mistakes.

We have all made mistakes as parents, wasting precious earnings, year after year.  Often too late we realize the landlord gained from our waste.

It is never too late to change that attitude.  Although more importantly we need to set an example to our children and I hope to give you ideas on how to do that.

Children can be selfish at times through no real fault of their own.  They throw a tantrum when they do not get their own way. Or when you go shopping you hear the repeated words. I want, I want.  It is during or after one of these times that you need to sit down as a family and set some guidelines.

Ask the children what they would do if they found no meals on the table or washing and ironing not done what would they think.  Yes, we know the answer to that.

Take this opportunity to suggest that in future, you want everyone to work together.  Explain how you will draw up a roster and give each person certain responsibilities.  I hear them winging already.

Now explain if they do these little jobs, they will be given pocket money in return.  You should have their attention now.  Depending on the ages of the children designate small chores.  I would not start this with children under five, although if they see the other children doing chores then include them in the roster. 

Five to ten year olds- can make their own beds (do not expect perfection) it is the responsibility of working together that is important. These could also help dry the dishes each night. The younger ones could dry the plastics. Do not let the kids dry any sharp implements.

Make a decision on how much to pay the children as pocket money.  No more than five dollars. As they need to learn the value of money and how to save for the things they want.

In return, if they have done the chores you tick it on the roster.  At the end of the week pay them.  This is where you spring another surprise.  You hand them a sealed container with their names on them.  Whatever you decide to pay them, they have to put half into the tin.  The rest they can save up for something special or spend as they wish. 

Our daughter did this with her children; they are in their twenties now and still have a savings account which they save a percentage of their wages in every pay day.

This a great way to teach them the value of money and start learning that money does not grow on trees.

Every time you go shopping with the children encourage them to see how much things cost.  The older ones need to learn how to work out how much change they will receive. Make it an interesting time for them if they get the right answers then reward them. 

How many times have you been served by a junior salesperson?  How do you think they would survive without the computers telling them how much change to give their customers? 

If you teach your children the value of money from a young age, at least you know they will not have this problem.  Of course they will make mistakes, but that is a part of learning.