Children don’t know a thing about money; however, if you want to raise a balanced future adult, financial education needs to be included in your parenting strategy. Even if for kids things just exist, they need to learn how these appear in their lives, and why parents can or cannot afford them. This being said, let’s see what the basics of financial education are.
Don’t throw money away like it grows on trees, as you’ll set a bad example for your kid and he won’t understand the real value of work. To act sustainable means in the context of financial education to work on explaining your child how and why you can afford some things or you cannot afford others.
Explain where money comes from
As stated earlier, a child needs to understand money doesn’t grow on trees, but you need to be able to find the perfect explanation to make your little one grasps that work equals money. More than this, he needs to see that works means a limited amount of money, while work also cannot be unlimited in order to grant infinite money. How to do this? There’s no perfect recipe, as no child is the same as yours, reason why you need to find a solution according to his know how and personality.
Plan spending that concerns him together
When he’s little, little will he know about gas bills or car fixtures expenses. However, toys come with a price tag, reason good enough to work with him on such expenses. Try to make him understand that work equals staying away from him in order to produce money, and time spent with him is more precious. This way you may be able to negotiate a bit on the toys and how often these are bought.
Pay his (extra) work
Ok, maybe this is not very orthodox as a general education tactic; however, as far as financial education is concerned, paying the child/teen to do some tasks won’t hurt. Yes, he’s supposed to do the bed – his, but what’s wrong in earning some money for an outing with friends while doing other beds too? Or mowing the lawn? He’ll see money is hard to make and easy to spend and this will teach him a valuable lesson on the long term. Also, he’ll see that various types of work are tied to different earnings, and he’ll understand what his limits are both in working and spending.
Financial education might be difficult to enforce, but its importance is great, so don’t spare any effort in raising your child with a good sense of work and money.