In this technological world, how do you begin to teach kids the value of money. Giving them a good foundation on money-related matters such as saving, spending, and budgeting will greatly help in developing their personal development. It doesn’t matter if you have a huge income or are getting a parenting payment. Teaching kids how valuable money is can be challenging at times, but what makes it more difficult is the fact that we’re in this day and age when digital and cashless transactions are everywhere. Online shopping, for instance, doesn’t involve physical cash, and kids may find it hard to understand.
Use real-life situations so they can develop healthy financial habits and learn how to earn, save, and spend money.
So how can you teach your kids the value of money in this cash-less age in Australia? Here are several tips to consider:
Start with piggy banks or saving jars
Set ground rules for saving and spending in such a way that when they need to buy something, they need to save money for it. By the time they have already saved enough, they can withdraw the money to make a purchase.
Open a savings account
Teach them how a savings account works. Kids will eventually understand that money deposited is kept in a safe place and can be withdrawn when needed.
Use an ATM
This greatly illustrates the value of money in this cash-less age. Explain to your kids that the ATM keeps the money saved in the savings account. When you withdraw money, you’ll have less in your account.
Check and pay bills
This is another great opportunity to teach kids how to use money. Explain to them that electricity and internet connection cost money, and you need to work hard to pay for these expenses. Who knows? They might even remember to turn off appliances when not in use.
Include kids in creating a household budget
This teaches them about income, spending, and savings. Explain to them how much money the family needs for food, utilities, entertainment, and mortgage on a given month. It will help them understand the value of working hard to earn enough money for basic family needs and savings.
Teaching your kids the value of money in this cash-less age is very crucial since you’re establishing a foundation on how they can manage money properly as they grow older. Use real-life situations so they can develop healthy financial habits and learn how to earn, save, and spend money.
Got other tips on parenting payment and how to teach children the value of money in Australia? Share your insights in the comments section.