In an increasingly cashless society, teaching children about the value of money is challenging. How do you teach children about money when we are only ever using our bank cards?
Teaching kids about money can be a rather daunting job as money is pretty important for our general everyday existence. It should really be something that is taught by the parents. Parents can give their children household jobs such as mowing the lawn, washing dishes, or washing the car, in exchange for pocket money. This helps with teaching kids about money and the concept of earning money rather than expecting it.
If they don’t do the work, they don’t get paid.
Some financial terms to teach your kids:
- Earning – you must work for your money
- Saving – not spending money immediately so it can be used for future purchases
- Spending – using money wisely to get something in return – always looking for the most value for money
- Opportunity cost – a benefit or value of something that must be given up to gain something else – the difference between needs and wants
- Budgeting – allocating what their money will be used for
Some money lessons that your kids should know:
- Money doesn’t grow on trees
- Good things come to those who wait
- Don’t spend it as soon as you get it
- Saving is cool
When it comes to small kids, we like the idea of a glass jar for their savings instead of a piggy bank. This way they will see the money growing. If kids develop good financial skills from an early age they’ll be ready for the financial challenges of adulthood.
Money Smart is a great program that helps to build the consumer and financial literacy capabilities of young Australians and helps educators, families and the community teach young people about money.
You can still be money smart by taking out a small loan with us to help you consolidate your debt or for just about any reason.
Apply here – https://apply.swoosh.com.au/loanDetails