Teach your kids the value of money

My kids used to be a nightmare to take shopping. They wanted everything they saw, didn't understand the meaning of 'no' and ended up with a lot of rubbish they didn't appreciate. Fortunately, when their mother woke up and got smarter with money, the kids did too. Many of today's children never even see real money, let alone understand the value of it, thanks to those magical plastic cards all us grown-ups carry around in our wallets.

However, the harsh reality is that if you send your child out into this world without a decent understanding of money these days, they are way behind the eight ball. Teaching your kids the value of money will protect them for their entire life.

Here are some simple ways to get started:

• Discuss with your child some goals and objectives they can save towards.
• Encourage saving, especially if your child earns money doing household chores or other set tasks on a regular basis.
• Teach your children to shop around, just as you do. Promote smart shopping habits, show them how to look for bargains or, be patient until the item they want comes on sale and can be bought for less.
• Encourage kids to set aside at least 10 per cent of their pocket money as savings, either into a moneybox or into their bank account.
• If your youngster is reluctant to save their money or they find saving a real struggle, offer to match their savings or give them a bonus sum as a reward when they reach their savings goal.
• Make it clear that your child needs to save up enough money before they buy the item they want - this means no pocket money in advance!
• If you do end up paying their allowance in advance to help them out, charge them interest on what you lend them. This is an excellent way for them to learn how credit works and affects us as adults.

Why not work out a payday scheme with your kids? It's a great way to start them on healthy saving habits - and make your life easier at the same time! Sit down together and make a simple spreadsheet where your child can keep a record of the money they've received, what they've spent and how much they've set aside in savings.

It's a fun way to learn about finance and kids will love to watch as their savings balance grows week after week.

My daughter used to want everything when she grew up, but then when she started school, I find it hard because I have been sick and quitted my job. I have told my daughter that I cannot buy her everything when she wants or when I cant, I tell her if I buy her everything, then I will never save up for something special for us, otherwise I would have nothing for her when she grows up. I have told her we gotta budget told her if she helps with bit of chores, she will get something she wants a month. She was so excited. I have told her I cannot spend on ice creams at deli everyday after school, I got her 1 kg of nepolitian Icecream and thousands sprinkles and chocolate topping with cones, She loves it rather than spending 20 dollars a week when only these items costs me 7 bucks.

Posted by Kristy from SA on 4/10/2008 11:19:47 PM

My daughter expected something everytime we went to the shop even if it was just a freddo frog. I seen this was becoming a problem so every saturday I would give her $10 pocket money, She had the choice to spend it all at once and recieve nothing all week or save half to spend on another day. I found that she started to appreciate the value of money more. After some time I noticed that she would often choose save some money which she would then add with her next weeks pocket money, I am happy to say that her piggy bank is almost full as she is saving for a playschool dance cam......... Not bad considering she is only 4years old......... I say teach them young.

Posted by Tammy from SA on 8/01/2009 11:49:13 PM

Grab the NEW LOOK that's life! for just $2.95!