Making children understand the value of money

At times parents are so hard working and their main goal is to provide their children everything that they need in life. But some of them forget that life is all about balance.
Children who are not made to understand the value of money have the tendency of becoming spoiled. While it is the duty of parents to provide their children what they need, it is also important for parents to teach children how to appreciate hard earned money.

Parents have to be able to specify that while money is an important part of a person’s life, it is not everything. They need to learn to value it, but they also need to understand that it must not be a source of greed.
A lot of children nowadays are being given expensive clothes and gadgets even at a young age. If a parent fails to explain how much work was performed just to attain it, they might not learn how to value what is given to them. In order to avoid making the children spoiled, the parents have to set standard rules and guidelines before they are given favors of such kind.

1. Starting at the age of 10, children must be given lessons on what money is, each children must be given a few dollars every week for them to spend however they want. Make their allowance reasonable to that of how much a household can afford, but make sure that for each allowance given to them there is a corresponding household chore that they have to finish. In this way, they would be able to associate the value of money and the time they put into achieving it.

2. Even at a young age, children must be taught about the value of money, how much things cost. You can take them to the store with you and allow them to understand the prices of the items you are paying for. Using this procedure, children would have a better grasp of how money is being used and what kind of items it can purchase.

3. As children grow older, you can increase their allowance but with the understanding that there are more responsibilities involved in the house. If you see that they are responsible with their money, you can reward them. In doing so, they would be able to equate responsibility and money. Increase the allowance if they learn how to save up and spend their money wisely. A proper training about money at home will greatly help children with their life in the future.

4. If you notice that the child is not using the money for the intended purpose, take back the money or lessen the allowance privileges until they learn to make proper use of it. You can ask them to take a summer job, so that in this way they would learn to be independent on their own.

5. Teach them how bank savings work, to encourage them to open a savings account for college and other pursuits that they might want in the future. Tell them that they could start saving up for a gadget that they really want instead of purchasing it for them immediately. You can give children gifts from time to time, but make sure that they know how to value the items you give them.

6. Avoid teaching the principle that money is everything, while in the process of teaching them to budget, make sure that they do not overvalue money in the end. The key is to balance every principle that they learn. It is important that children learn the value of money without necessarily getting obsessive with money.

7. You need to help them clarify what is a need from a want, what is a wish from what is necessary. Some people even if they are already adults still have a hard time grasping this. People need to learn what is a need from a want that they may learn how to prioritize.