When and how should we teach our kids the value of money?

I'm a mother with 2 kids, a 7 year old boy and a 5 year old girl. me and my husband motivated them to save money in fact they have saved already some hundred bills and coins. we encouraged them to save esp. if they want to buy toys or anything they like, we told them that we cannot find money anywhere, it's not easy to look for money, we need to work for it to be able to earn for a living. what's important is the needs not the wants. we started giving them allowances as soon as they start going to school, during their nursery or kindergarten. i have noticed that my son saved some coins bec. he did used all his money for the snacks. he bought foods cheaper so that he can save coz he's planning to buy a cheaper toy for his collections. he is very happy to display all his toys at home. but we parents will not tolerate or spoil them whatever they like will be given, they have to sacrifice for it or save money inorder to buy of what you want, for your needs and for better education. sometimes, we let them count their savings to practice calculations in math. we see them very happy and we're planning to put it in a savings account in the bank for future use.

I think that we should teach our children as soon and as often as we can about money. Teaching them the difference between neccesary costs and unceccesary ones, it can greatly help them in the future. I find that a piggy bank works well, or if you get one of those counting piggy banks its even better. You can reward them for saving they're money instead of spending it, and teach them how to save money and get nice things in the process. I think that children today don't know the value of money, and that is hurting them in the long run. We need to teach our children about money as much as we can so that they will be ready to take on they're lives as functional adults.

I grew up with allowances and "rewards" and such. I do not think that I will be giving my children allowances. I do want to teach my child the value of money, but I also want to teach him that some things you do just because you are part of a family. Some things you do to be kind. Such as household chores, carrying out a neighbors groceries, ect. I do NOT want my child taking money from his neighbors for these things. I think a good way to teach the child a value of money is to say things like "Mommy worked extra hard at work today, so I made more money. Would you like to help budget with me?" and than maybe work out a treat somewhere in your budget with your child. Of course with little ones they cannot learn about "Budgeting" at this age, but it is just something that you would slowly introduce to your child.

What my husband and I do with our kids is give them each $5 a week for doing there chores. For every day they dont do a chore they loose $1. We are having them build it up untill they reach $20 then we will allow them to go spend it on something they want. We will tell them what they need and why they need it and let them decide what to do. Bear in mind my kids are 8, 6 and the youngest is 3. The 3yr old we just let her do what she wants but we try to guide the other 2, yet letting them make there own decision.

as soon as it is safe, meaning that there's no danger the kids gonna swallow the money. Wanna teach him how to save money? try the threes method. any money he receives is divided into three: one for saving, one for him to spend on and one for things he is planning to buy like that new playstation he's been drooling about!

My parents handled teaching us about money very well. From the time we were old enough, we had chores that we were responsible for. We got paid for doing our chores. Even a small child can help fold laundry or wipe off the dinner table. I remember getting paid a couple of dollars a week, and it eventually went up to five dollars a week. If me or my sister wanted something, we had to save up our money to buy it. I remember saving up every couply of weeks for the latest book in my favorite series. As far as tantrums, whining, etc: it didn't happen. My parents were believers in the good ol' hickory stick. I probably only received a handful of whippings in my life (and never enough to hurt me) but they happened when I was young. The trick is, no matter what your form of discipline, is to follow through with your threats. Don't give chance after chance after chance. If you're in the store, and the child is whining, then you tell them to be quiet or you're going home. If they continue, then put your things down and go home. When you get home, carry out your form of punishment. It'll mean making another trip to the store, but your child will learn that you are serious, and that when you say that they're going to get punished, then they really are going to get punished. I remember asking my parents once when I was little why they couldn't just charge something. I think I want some toy or something. My mom explained to me that things cost money, and that using her card was the same thing as giving the store real money--she would have to pay it later. She went on to explain that mama and daddy only have so much money in the bank, so they couldn't just charge it. It was easier for me to understand this because they had already started me on an earned allowance, so I was already beginning to understand the value of money. An important thing to remember is that kids shouldn't just get money for breathing. They do not deserve to have spending money just for taking up space. In the real world, money has to be earned, and this should hold the same for kids as adults. Make a simple check-off list of chores that are age-appropriate for your child, and assign a monetary value to each chore. (ex. picking up toys-50 cents) If that chore does not get finished, then they don't get paid--it's that simple. And remember, even a three year old can begin to understand this; give them simple assignments, like putting away their toys. Keep a piggy bank or a coffee can with their name on it, and every week pull them aside and let them put their earnings in the bank. If there's a toy that they really want, write down the amount of the toy on the bank as the goal (maybe even a picture of the toy next to the bank can be helpful for smaller kids). And once they've earned enough, take them and their bank to the store and let them buy what they've been saving for. They will be so proud knowing that they earned that toy, and that lesson will be really important to them. Make it a habit from the time they're small, and when they get older, they will be reluctant to ask you for money, because they will be used to working and earning it. Trust me--that's how both me and my sister turned out. But remember: the occasional 'surprise' is not a bad thing either--when it has been earned with good behavior or something similiar. But these should be rare enough to be considered real treats--and it doesn't have to be anything big. Something small works wonders. Just don't fall into the trap of bribery ('if you're good while we're in the store mommy will buy you a toy'). When we were kids, my mom promised that if we were good, we would go and look at the toys before we left. It didn't cost her a thing, and if we saw something we liked, she just had to say that it was something we could be saving for. Half the time, we forgot about it on the way home. It helped us work towards things that we really wanted, and not just stuff that looked cool. It's a great tool, and very effective.

We should start when our kids are really young. We started giving our son money to buy a few grocery items on a regular basis when he was just seven. That way he became used to handling money and realized the value of money. By the time he was ten, he calculated and maintained the laundry diary. Now he keeps a diary listing our monthly expenses and he is twenty. We have asked him to find ways to reduce the monthly expenses. He is working on it.

I think we can give good education about value of money why their parents are not fulfulling all their desire. If childs are undersood this advice produce good result.

It is good that you are thinking on these lines. I think if one teaches one's child to manage within the available resources, they would understand it and not throw tantrums. But for a child to understand the purchasing power of money, he should be fairly big. A small child of 20 months can not, perhaps, appreciate this aspect. It may be better to give pocket money for a week. This would help the fellows in learning to plan.

Hi ethanmama. My eldest girl used to be like that. I decided to put an end to this unbecoming habit of hers. I will not be doing my job of disciplining her if I continue to give in to her every whims. It was difficult at first but I stubbornly refused to give in. I let her sulk around even when we're in the public area. Fortunately, she had learned the value of saving money instead of buying things that are not important. I have opened an account for each one of them. They were so excited seeing their first bank books. All the money they received during special occasion will automatically go to their accounts. I still provide piggy banks for them. For every chores they did, they will earn a coin from me. Its my way of preparing them to be independent and not to rely on anyone to do things for them. I don't give any allowances to them. They ate at the school during lunch time. I don't think it is necessary at this stage (grade school) to give them money. I always told them to save their money so they can use it when they reach at an age where they can properly handled it themselves.

It is tough to make the child understand that the toy he wanted is beyond the parents' budget. He would never understand. The only way is to find another one to his liking and he will get over it. I find kids easy to humor at times. As for giving the child allowance, I would think it is appropriate only when he starts school and has opportunity to buy food for himself. I would think it is appropriate to teach him the value of money and the importance of savings. The piggy bank is a good idea. As for invest, I feel it is way too early unless he is past his teens.

Kids learn from what they see, and they do thi from a young age. So when a parent decides to instill some teachings on value of money, he/she may well find that the kid has formed his own opinions, and those may well have become too deep-rooted to abolish overnight. So it's best to set an example. Spend cautiously and carefully when you are with yor kids. Let them know that you value money. Kids will pick that up and would themselves value money.

lady,,price is wat u pay value is wat u get..

by the time they begin asking (and crying) for everything they see on tv, stores etc. when using credit card,it´s important to show them we´re still being charged for that toy he/she threw away within 2 weeks after buying it.

well, my parents start giving me pocket money on a daily basis when i am 6 or 7 years old on a daily basis and always ask me to save for rainy days and to buy the things i want... it works for me... i grow up having the skill to manage money properly and do a good family budgeting now that i have a family... i think children should be taught as early as possible to appreciate the value the money so that they can be a responsible person when they grow up... and piggy bank thing sure still work for children nowadays...

I agree, Ithink a lot of parents go overboard in what they spend on thier children, simply because they don't want thier children to be sad, or to be angry at them. I would much rather take that 100 dollars and spend it on an extra mortgage payment, so that when the time comes, I can pay for something for my child that will really matter, like a car, or a college tuition! I think we should begin teaching our children about money at an early age. My oldest (almost 3 years) has been learning about money for a while. We are Christian, and believe in giving 10% to our church, so when we go to church, we give him change to put in his offering. I think that if a child does recieve an allowance, it should be based on EXTRA things he does. I think every child should have certain chores that they do, that they are expected to do, and recieve a simple thankyou for. It should be thier responsibility to make thier bed and straighten thier room, it's thier stuff. BUt if they help Dad clean out the garage, or volunteer to do an extra load of laundry, I could see how that should be rewarded moniterily. We will be opening a saving account for both of our boys soon. Then we will begin to stress the importance of saving money, but with anything, if you don't practice what you preach, they'll never buy it.

I have two daughters and none of them is always looking for money. I have raised them with a great attitude about money. I never give them money just to buy anything they want from the store or they want to play in a arcade. I told them money is very important if you spend it wisely. I have to admit that I'm a little spender too in buying foods coz I love to cook, but my children see that I never spoiled every single food that I cooked. When going to school I don't give them money for their snack I'll just do what they want for their snack like sandwiches,juice etc. Coz I'm not confident in the food they serve in the school I see to eat that my children eat a nutritious food. And when somebody gives them money as a gift or a token they put it on their piggy banks for there own savings.

Mother you are a loving mother but all about money time will tell but education you can begin now by being keeping him healthy happy and reading stories from books or self made stories of your own childhood with a good theme. Talk to him good things. When you buy toys let him pick it up, because he will be happy. In that little mind he knows why he wants it, sometimes it will be cheap or expensive. Just dont waste money on things he is not happy. May God bless you and loads of blessings for your son.

I exactly understand what you mean, my son is 5yrs old now, actually he dont have enough knowledge about the money, my husband spoil our son's so much that everytime he want something when we are in the department store he always buy it for him. But he do listen to us whenever there are times that we disagree about his likes. We sometimes discuss to him the value of money, but he is too young to understand us, maybe when he is mature enough, that's the right time to discuss that to him, for his age he didnt actually know how to go to the store and buy candies or something. He didnt like money anyway..all he want is to have the toy that he likes..

For me I could teach my child the value of money when I will give him the very fisrt big amount of money in n\his pocket, some chit chat after that so that I won't pressure him.