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Money Lessons Kids Should Learn Before School Starts

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Young Boy Counting Coins
A parent should help a child sort cash into spending, saving, and giving jars while preparing school supplies, demonstrating practical money lessons before the new school year begins. (Pexels).

The weeks before a new school year begin are the perfect time to teach children practical money habits they can use both in and out of the classroom. Whether they’re buying lunch, saving for a new backpack, or managing birthday money, everyday situations create valuable learning opportunities. Financial experts agree that introducing age-appropriate money concepts early helps children develop confidence and responsible decision-making over time. These lessons should be viewed as educational activities that build lifelong financial skills, not guaranteed methods for achieving a particular financial outcome.

Understand the Difference Between Needs and Wants

One of the first money lessons kids should learn is how to tell the difference between something they need and something they simply want. Back-to-school shopping is an excellent opportunity because children often see trendy supplies or expensive clothing they don’t necessarily need. Parents can involve kids by creating a shopping list together and discussing why certain purchases take priority over others. This simple habit encourages thoughtful spending instead of impulse buying and helps children understand that every purchase involves making a choice. Over time, these conversations build stronger decision-making skills that extend far beyond school shopping.

Set a Simple Savings Goal

Teaching children to save toward a goal helps them practice patience and planning. Instead of immediately spending birthday money or allowance, encourage them to choose something meaningful, such as a new bike, game, or sports equipment. Watching their savings grow over several weeks gives kids a sense of accomplishment that instant purchases cannot provide. Even younger children can use a clear jar or labeled envelope to visualize their progress. Adjust savings goals based on the child’s age, development, and your family’s circumstances.

Learn That Money Is Earned Through Work

Children often receive money as gifts without fully understanding where it comes from. Explaining that money is earned through work helps connect effort with rewards in a realistic way. Age-appropriate chores, neighborhood pet sitting, lemonade stands, or babysitting for older children can reinforce this lesson while teaching responsibility. Parents should emphasize that earning money also means making thoughtful decisions about how it is spent or saved. The goal isn’t simply earning extra cash but helping children appreciate the value of work and personal responsibility.

Practice Creating a Basic Budget

A simple budget doesn’t need to involve complicated spreadsheets or financial software. Children can divide money into categories such as spending, saving, and giving to understand how planning works before they make purchases. For example, a child with a limited amount for school supplies can compare prices and decide how to stretch that budget without overspending. Learning to budget before school starts also prepares them for handling lunch money, field trip expenses, or school fundraisers during the year. Budgeting activities should always be adapted to the child’s age and level of understanding.

Compare Prices Before Buying

Children are surrounded by advertisements encouraging them to buy the newest products, especially during back-to-school season. Teaching them to compare prices helps them become smarter shoppers instead of impulsive consumers. Parents can compare two similar notebooks, backpacks, or lunch boxes and discuss whether the higher-priced option offers meaningful value. Kids quickly discover that a bigger price tag doesn’t always mean better quality. This practical habit develops critical thinking while helping children become more informed consumers.

Learn That Mistakes Can Be Valuable Teachers

Every child will eventually make a spending decision they regret, and that’s perfectly normal. If a child spends all of their allowance on a toy that quickly loses its appeal, the experience becomes a low-risk lesson about thinking ahead. Rather than immediately replacing the money or purchasing another item, parents can discuss what the child learned from the experience. These conversations build confidence because children realize mistakes are opportunities to improve future decisions. Allowing small, age-appropriate financial mistakes today can help prevent much larger ones later in life.

Smart Money Habits Start Long Before Graduation

The best money lessons kids should learn before school starts aren’t about creating future investors overnight. They’re about helping children understand how to make thoughtful choices, plan ahead, and recognize that money is a tool rather than a goal. Every family can adapt these educational activities based on a child’s age, maturity, and unique circumstances, making financial learning both practical and enjoyable. By starting with simple conversations and everyday experiences, parents can build confidence that supports smarter decisions throughout the school year and beyond.

What money lesson do you wish someone had learned as a child? Share your thoughts and experiences in the comments below.

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6 Ways to Teach Kids About Money Without Lectures

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questions to ask kids
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Most kids tune out the second they hear a parent start a sentence with the phrase “when I was your age.” Money often feels like a dry or stressful topic, especially when it involves a list of things a family cannot afford. Children actually learn more from watching your daily habits and participating in small decisions than they do from any formal sit-down talk. The modern financial system is designed to be invisible through credit cards and auto-pays, which makes it harder for kids to grasp the value of a dollar. Bringing them into the hidden world of family finance in a fun way helps build their personal confidence. Using these strategies makes financial literacy a natural and engaging part of their lives.

1. Use the Three-Jar System

Visual aids are much more powerful than a bank statement for a young mind. Use three clear jars labeled Spend, Save, and Give instead of a single opaque piggy bank. When children receive an allowance or gift money, they get to decide how to distribute it among these jars. This gives them a sense of agency and shows them that money serves different purposes. Seeing the “Save” jar grow over time provides a physical representation of patience and discipline. It turns a boring concept into a tangible goal they can see every day. You can find age-appropriate allowance guides to help determine the right starting amounts.

2. Play Grocery Store Detective

Turn your weekly shopping trip into a challenge by giving your child a small budget for a specific category. Ask them to find the best value for a gallon of milk or the most cost-effective snack for their lunchbox. This teaches them to look at price-per-ounce and recognize how branding influences the final cost. They become the ones making the strategic choice instead of you simply saying “no” to expensive items. Children often become very competitive about finding the best deals when the task feels like a game. It is a practical lesson in trade-offs that sticks much longer than a lecture.

3. Introduce the Concept of Opportunity Cost

One of the hardest lessons for kids to learn is that choosing one thing means saying no to another. Avoid saying “we cannot afford it” when they want a new toy. Explain instead what that money could buy elsewhere, like a trip to the movies or a special treat later in the week. This shifts the conversation from a lack of funds to the actual power of choice. It empowers them to think critically about what they truly value in the moment. They start to apply this logic to their own small purchases over time without you needing to intervene. The Consumer Financial Protection Bureau provides excellent resources for explaining these choices to different age groups.

4. Let Them Manage a Fun Fund

Give your children a set amount of money for a family outing, such as a day at the zoo or a fair. Tell them this specific budget covers all snacks, souvenirs, and extra games for the day. The extras stop once the money is gone, but the decision-making remains entirely theirs. They will likely blow the entire budget in the first hour once, but the lesson they learn from that mistake is invaluable. It is much better for them to fail with twenty dollars now than with a mortgage later in life. This hands-on experience builds a real-world understanding of how budgeting works in the wild.

5. Show Them the Invisible Bills

Since most adults pay bills online, kids often think electricity and internet services just exist for free. Sit them down once a month and show them the digital dashboard of your household expenses. Explain that the hours you spend at work translate into the air conditioning they enjoy or the streaming service they watch. You do not need to share exact salary numbers if that feels uncomfortable, but showing the connection between labor and lifestyle is crucial. It helps them appreciate the hidden systems that keep their home running smoothly every day.

6. Gamify Long-Term Goals

Create a visual progress chart on the fridge if your child wants a big-ticket item like a gaming console or a bike. Offer to match their savings or provide interest for every month they do not spend their birthday money. This introduces the idea of making money work for them through specific incentives. They feel a growing sense of accomplishment that a direct gift could never provide as they color in the chart. This habit of delayed gratification is a significant predictor of future financial success. It turns a long wait into an exciting journey toward a earned reward. Using savings goal calculators can help them see exactly how long it will take to reach their target.

Teaching kids about money is really about values and decision-making rather than complex math. You remove the stigma and boredom associated with finance when you stop lecturing and start involving them. You are giving them the tools to navigate a world that will constantly try to separate them from their earnings. Your goal is to raise an adult who views money as a tool for freedom rather than a source of anxiety. Starting small and keeping it conversational sets them up for a lifetime of smart choices. What is one thing you wish your parents had taught you about money when you were younger? Think about that lesson and leave a comment below to join the conversation.

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5 Reasons Why Allowance is a Waste of Money

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Allowance is a waste of money
Image source: shutterstock.com

You probably remember the excitement of getting a few dollars every Saturday for doing your chores or simply existing. It felt like the first step toward adulthood, but in today’s complex economy, that old model is failing our children. Giving a flat allowance often creates a sense of entitlement rather than an understanding of how value is created. Honestly, we are raising a generation that understands how to spend money without ever learning the grit required to earn it. The traditional allowance system is a relic of the past that does not prepare kids for the high-stakes financial world of 2026. Let us look at why this common parenting tool is actually a waste of your resources.

1. It Fails to Model the Real World

In the adult world, nobody gives you money just because you finished a week of living. You are paid for the value you provide and the problems you solve for others. When kids receive an allowance regardless of their contribution, it builds a false expectation of how the economy works. Surprisingly, this can lead to a shock later in life when they realize that effort does not always equal a paycheck. On the other hand, a commission-based system where they earn for specific tasks mirrors the reality of a workplace. It teaches them that their income is a direct result of their initiative and reliability.

2. It Prevents the Lesson of Scarcity

A steady, guaranteed allowance removes the healthy pressure of having to make difficult choices. If the money just keeps coming every week, they never have to experience the feeling of a truly empty wallet. That said, learning to wait and save for something they actually want is a vital developmental milestone. According to insights from Child Development Institute, delayed gratification is one of the strongest predictors of future success. By providing a safety net of free cash, you are inadvertently robbing them of the chance to build financial resilience. They need to feel the sting of a bad purchase to appreciate a good one.

3. It Decouples Work from Reward

When money is disconnected from labor, it loses its meaning as a representation of time and energy. Kids need to understand that every dollar they spend represents a portion of someone’s life spent working. An allowance often makes money feel like a magical resource that simply appears in their hand. This makes it much easier for them to waste it on low-quality toys or digital in-game purchases. Honestly, the system should encourage them to see money as a tool for freedom, not just a ticket to the store. Teaching them to work for their goals creates a sense of pride that an allowance simply cannot match.

4. It Stifles Entrepreneurial Thinking

A fixed allowance provides a ceiling on what a child can earn, which can actually kill their creative drive. If they know they will get ten dollars regardless of what they do, they have no incentive to find new ways to be helpful. On the other hand, if you encourage them to find extra projects or start a small neighborhood business, you are fostering a growth mindset. Many successful leaders started by finding ways to earn extra money beyond what their parents provided. Organizations like Junior Achievement emphasize that early exposure to work leads to better career outcomes. You want your child to be looking for opportunities, not waiting for a handout.

5. It Often Becomes an Emotional Battleground

How many times have you used the allowance as a threat to get your kids to behave? This turns a financial tool into a weapon, which creates a negative emotional connection to money. It becomes a source of power struggles and resentment rather than a learning experience. That said, when money is earned through a clear agreement, the emotion is removed from the transaction. It becomes a professional arrangement between you and your child. This clarity helps maintain a healthier relationship while still teaching the value of a dollar. It is about respect, not control.

Raising Financially Competent Adults

The transition from a passive allowance to an active earning model is the greatest gift you can give your child. You are moving them from a mindset of consumption to a mindset of contribution, which is the foundation of true wealth. While it might be easier to just hand over a twenty-dollar bill, the extra effort of teaching them to earn will pay dividends for decades. You want them to enter adulthood with the confidence that they can provide for themselves regardless of the circumstances. By ditching the allowance, you are finally letting them see how the hidden system of value actually works. Do you still give an allowance, or have you switched to a different system? Leave a comment and let us know what works for your family.

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7 Lies Kids Tell To Get Your Money (No, They Didn’t Clean Their Room)

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7 Lies Kids Tell To Get Your Money No They Didnt Clean Their Room

Kids are clever—sometimes a little too clever when they want something. Whether it’s an emergency need for snacks, a school fundraiser that mysteriously popped up, or a sudden urge to “invest” in slime supplies, children can get creative when it comes to accessing your wallet. While honesty is a value most parents try hard to instill, there are some common fibs that pop up again and again. And let’s be honest: you’ve probably heard a few of these already. These are seven of the most common lies kids tell to get your money, and what you can do to stop the habit before it becomes a routine.

1. “Everyone Else Got One”

This classic peer-pressure line is designed to make you feel like the only unreasonable parent on the planet. Whether they’re talking about new shoes, a gaming headset, or lunch money for a food truck day, the idea is that saying “no” will leave them tragically left out. But unless you’re in a group chat with every other parent, it’s hard to verify. This is one of the most manipulative lies kids tell to get your money because it plays on guilt and your desire for them to fit in. A good response? “Let me check with another parent first.”

2. “It’s for School”

Suddenly they need $20—for school. No details, no teacher note, just vague urgency and a backpack that definitely doesn’t have any paperwork in it. While some school-related expenses are legitimate, this fib is frequently used to mask snack runs or extra money for vending machines. It’s one of the more believable lies kids tell to get your money, which makes it harder to call out. Request proof or ask follow-up questions like what class it’s for, when it’s due, and if it’s listed on the school calendar.

3. “I Lost My Lunch Money”

Sometimes this one’s true, but when it happens every other week, your wallet starts to wonder. Claiming to have lost lunch money is an easy cover for spending it elsewhere—on candy, apps, or lending it to friends. It’s one of those lies kids tell to get your money that parents often give in to out of concern. Instead of handing over more cash, offer to pack lunch for the next day or set up a prepaid cafeteria account with limits.

4. “I’ll Pay You Back”

This little promise sounds so responsible and grown-up. But unless your child has a steady income (or an unusually reliable allowance history), “I’ll pay you back” often translates to “you’ll forget I owe you.” While it might start small, this habit can lead to poor money management skills later in life. If you’re hearing this lie kids tell to get your money too often, consider setting clear borrowing rules or using an app to track IOUs. It’s also a great moment to teach about earning money before spending it.

5. “I Need It for a Gift”

Wanting to buy a friend a birthday gift is a thoughtful gesture—but sometimes, it’s just an excuse to get spending money. Kids may ask for funds to buy something “for a friend,” only to turn up with snacks or toys for themselves. It’s one of the sneakier lies kids tell to get your money because it sounds generous and kind. Ask where they plan to shop, how much the item costs, and offer to help them pick something out—this usually separates truth from fiction quickly.

6. “You Said I Could”

Unless you write every financial agreement down in blood (or at least in your Notes app), this one is hard to argue. Kids are known for selective memory, and “you said I could” is often code for “I hoped you would.” This lie kids tell to get your money usually pops up when they’re trying to make a quick purchase without checking back in. A good counter? “Then I’m sure you won’t mind waiting until I remember saying that.”

7. “It’s Only a Few Dollars”

This one is dangerous because it sounds harmless. But those “few dollars” quickly add up when you hear it every week. Whether it’s for an extra snack, a tip for a delivery, or something small from the school store, this lie kids tell to get your money minimizes the ask to avoid a “no.” Teach them to treat every dollar as valuable. If you want to curb the behavior, give a set weekly amount and let them manage it—no top-ups, no exceptions.

Raising Smart Spenders Starts with Honest Conversations

Kids learn from trial and error—and sometimes from pushing their luck. Spotting the lies kids tell to get your money isn’t about catching them in a trap, it’s about using those moments to teach integrity, budgeting, and healthy communication. If you give them the tools to manage money wisely and reinforce the value of trust, they’ll eventually stop trying to hustle you for snacks and start asking you for tips on saving.

Which fib have you heard the most from your child when they want money? How did you handle it? Share your stories in the comments—we’d love to hear them!

Read More:

The First Time They Lied to You: How Innocence Really Ends

8 Things Kids Do to Hide Their Bad Behavior from You

What Is the Greenlight Card for Kids?

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If you have kids that are in middle school and high school, you likely feel the need (as I do) to teach them financial common sense.  The hope is that eventually they will be able to move out on their own and be financially responsible.  However, this lesson isn’t quickly learned, and it requires a lot of parental oversight to do it right.  One tool that can help you is the Greenlight Card for kids.

Greenlight Debit Card for Kids

What Is the Greenlight Card for Kids?

The Greenlight Card for kids is a debit card your children can use, but it comes with some amazing parental controls so you can help guide and influence your children in their money habits.

Please note that if your kids have smartphones, there is an app they can use which will show them their balance and chores and allow them to make requests.  However, the Greenlight Card for Kids can be used if kids don’t have smartphones, also.

Features of the Greenlight Card for Kids

This card makes allowances high tech.

Instantly Deposit Money

You can reward your children for chores well done by depositing money in their Greenlight Card.  Within the card app, children can set up different categories such as spend, save, and give.  They can also set up long-term goal categories such as saving for a car.

Parental Benefits

You can help your children manage their money with this helpful card.  You’ll be given real time spending alerts.

Teach your children about interest by giving them interest payments on their savings.  You decide how much you want to give them.

In addition, you can enable the feature that allows them to withdraw money from the ATM and set how much they’re allowed to withdraw.  Or, you can make withdrawing money off limits.

Features for Older Kids

Greenlight Debit Card for Kids
Photo by Stephen Phillips – Hostreviews.co.uk on Unsplash

If your teens have jobs, they can have their paycheck automatically deposited to the Greenlight Card for Kids.  The card can also be added to Apple Pay or Google Pay.

Safety Features

Each Greenlight Card is FDIC insured.  In addition, the card blocks your children from spending money for gambling or buying lottery tickets.  They also won’t be able to spend money at places like massage parlors and horse or dog races, and they cannot get cashback from a purchase.  You’ll get an alert if they try.

In addition, parents have the ability to turn the debit card on or off, should they need to.

How Much Does the Greenlight Card Cost?

The first month is free.  After that, you pay $4.99 for debit cards for up to five kids.  Should you need replacement cards, the first replacement cards are free.

Final Thoughts

The Greenlight Card for Kids offers a way to give your children financial independence while also providing parental oversight so you can help guide your children into financial growth.  This tool is an excellent way to exchange money between parents and kids while having features that let your children grow in responsibility as they grow up.

CIT Bank Money Market Account

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How Much, If Any, Should You Pay Your Kids For Chores?

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Should you pay your kids for chores? The answer isn't always so simple. Here's an idea of when you should and shouldn't.When kids are young there aren’t many ways for them to earn money of their own. Household chores are an easy and accessible way for kids to do so. Unlike an allowance, which I think is something that, when given, should be given out of funds that would already be allocated to the child, earning money from chores is a way of kids to work for their money.

I think there should be a level of expectation being a child who lives at home in terms of contribution to the household. Being a kid isn’t an excuse to not contribute to daily chores. Even at three years of age, my daughter is expected to help clean every mess she makes, as well she helps me with easy tasks like unload the dishwasher or simply putting something in the garbage can when asked. We have friends however, who do everything for their kids.

Children need to understand that running a house isn’t ‘’free’’. There is a lot of work and effort that goes into it and the responsibility isn’t just the parent(s). Everyone who lives under the roof should use their abilities to contribute.

In my opinion there are certain chores should never be paid for. Every child should have basic chores regardless of age. These chores should be determined by the parents, taking many things into consideration, but basics like maintain a clean room, help with laundry (a life skill they need to know) and help with meal prep and cleanup are examples of ‘’chores’’ that are expected, not rewarded for.

If a child is looking to earn money consider making a chore chart. A list of ‘’extra’’ chores, with an associated dollar amount which they can choose from if and when they need additional money.

Examples may include something like:

  • Clean garage- $10
  • Wash mom/dad’s car- $10
  • Weed yard- $20
  • Clean litter box (dump old litter and wash)- $5

These are household tasks that need to be taken care of and give the child the opportunity to do so. Notice there is no simple tasks like ‘’make bed’’ or ‘’put away laundry’’, again these are simple tasks that are expected to be done regardless.

My experience is that too often kids leave home with a diluted perception of how a house is run. So many kids leave home never cooking a meal, turning on a washer, using a clothesline or washing dishes and it terrifies me. Chores aren’t established as a way for parents to have control over their children (though there is some of that too ;)) it’s a way of teaching responsibly and life lessons.

How a family decides to establish a chore system is unique to each family but not having a child do any household chores only does damage to the kid and their future.

Do you enforce household chores? What, if anything do you pay your kids for?

Handling Allowance With My Daughter

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daughter allowanceI didn’t grow up receiving a regular weekly allowance. I can honestly say as an adult that this has played a huge role in the financial choices I made growing up. Since no one taught me, I had no idea how about money management. Sure, I played with monopoly (play) money in grade school for pretend math class assignments, and gladly handed over my pocket change when the credit union came each week to collect our money putting it into a savings account for us, but I really had no understanding of money. Even as I grew up and got my first part-time paid job in high school, I didn’t know what I was supposed to be doing with my paycheques. All I knew was that I was making my own money now and no longer needed mommy every time I wanted something.

 

The Importance of Allowance

For these reasons I personally believe allotting an allowance for kids is important. I plan on implementing a weekly allowance for our daughter when she’s old enough to understand what money is, probably around the age of six to seven. I want her to understand why she cannot  have something other than me just saying ‘no’. I want her involved in purchases that affect her and help make the decision. I need her to understand the importance of savings. All of these things cannot be fully understood with ‘play’ money.

Have you ever tried to play a poker game with fake money? The betting can get ridiculous because you have no real ‘skin in the game’ so-to-speak.

How Much?

Honestly, right now (her being seven months old) I don’t have an exact amount in mind that we’ll give her but it will be a percentage of money we plan on spending on her anyways. What I mean, is that we don’t necessarily plan on creating a whole new section of our budget for kids allowance, rather allocate money to her from money we would have spent anyway (clothing or shoes for her, school supplies etc). This way she can be involved in how her money is spent. As parents we are responsible for spending money on her for the next 18 or so years, why shouldn’t she have some involvement?

One option is giving a weekly amount (say, $3.00 a week to start) and teaching how to save a percentage and budget for things desired. When she gets older maybe we will make her  responsible for handling and helping budget for larger purchases like back-to-school shopping. Whatever option ends up working for us, the key is to have her directly involved in buying items so she can learn to respect money and understand that it is not an infinite resource.

I also don’t want to pay her only when she does household chores which is a common criteria for parents to award allowance. As a member of our family, when she gets old enough, she will have an unpaid responsibility to contribute to our household. Should she go over and above her required chores and do extra, she may be able to make some extra money, but I refuse to pay her for normal expectations.

 

Learn From My Mistakes

When we go shopping I want her to understand the importance of shopping with a list and sticking to it. This will teach her the importance of budgeting and planning. She will learn that if something is not on the list we won’t be buying it today, and if we (she) sees something while we’re out that she may want, we have to make a plan on how to buy it.

These are all tools I wish I had in my back pocket. Not that I grew up thinking money was an infinite resource, but I never appreciated the value of a dollar until I was much older and in a boat-load of debt. Everything I know about money is 100% self-taught. I still have a way to go but my hope is that through allocating a proper allowance and starting early enough my daughter can avoid the same paths I’ve already been down.

If you have kids, do you give them an allowance? How much?

Christmas as a Catalyst for Money Talk

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Christmas is a good time to teach kids about moneyChristmas is a season most often related to parties and gift-giving. This is especially true for the little ones. If you have kids, and young kids like I do, you will hear a non-stop stream of Santa wishes the moment you put your tree up. I was thinking about this as I was decorating my tree with my son and daughter and I thought now would be as good a time as any to start teaching them about money.

To be honest, this was a tough one for me There are so many schools of thought about how to go about doing this. When should you give your child an allowance, how much should this be, should you tie this to chores or not, and the list of questions goes on and on. I did some research and decided to try to combine a lot of what I thought made sense to me and I could actually apply.

Teach Your Child The Money Basics

Carol Wilson, a financial adviser from Salt Lake City, says that children learn about money the moment you start taking them to the store.

Your toddler begins learning about money from what she observes during visits to the store. When she reaches age 3 or 4, you should be explaining some of your shopping decisions: ‘We’re buying peaches today because they’re on sale,” or “We’re using coupons from the newspaper to help pay for our cereal.”

I found this to be so true. I’ve been taking my kids to the stores with me as soon as they were allowed by their pediatrician to venture out into the world and I must say my 5-year old knows all about buying food items, our grocery schedule, the fact that when I say “we have to buy more bread”, he knows that means a trip to the grocery store to pick out a loaf which will be paid for at the cashier. And my 3-year old is not far behind.

Now, I know that they know what money is and that it gets us goods and services (ok, services is stretching it, but you get the drift), I’ve decided to start teaching about the value of money. Ok, I’m going to do my best. This is not the easiest topic to teach.

Tips in Learning About the Value of Money:

Here are some tips I think are constructive and realistic when teaching your kids about money

Identifying money. Make sure that she knows the difference between a nickel and quarter.

Currency is different here in Manila but I get the gist of this point. My son knows the difference between all the bills and the coins but not the difference in values yet. Hmmmm….something to work on.

Making change. Make sure that she knows how to present enough money to cover a purchase and to count her change.

Ok, my son and daughter have very recently taken to buying a local tapioca and soy drink. A vendor passes by our house every morning and they come running to me for coins to make their purchase. This is a simple way to present covering a purchase and getting change. I’m happy about this.

Being responsible for money. If she loses the dollar that was in her pocket, she has to know that it’s her loss (you won’t replace it). This will teach her to be more careful in carrying money.

One morning last week, I gave my son some coins to buy his current favorite tapioca-soy drink. But the vendor didn’t come around that day and I didn’t get my coins back. The vendor did come the next day though and, like clockwork, both my kids came runing into the room to ask for change. So I asked my son where yesterday’s change was and he shrugged and said he dropped it. I told him that money was valuable and that he had to take care of it or he wouldn’t have any the next tiome he wanted to buy something. He didn’t get his drink that morning and seeing those big, fat tears almost made me cave. But he hasn’t misplaced his coins since. I’m hoping the lesson wasn’t too harsh.

Understanding that things cost money. From the candy she eyes at the supermarket checkout counter to the premium movie channels on TV, she must know that nothing comes free.

Well, the way I handle this is, every time we go out, I tell my kids that we can make 1 minor toy purchase only (if any). Antyhing they want after that has to go to the next trip becuase I only bring enough money for 1 toy each.

I also try to teach them about caring for their toys becuase these cost money and can’t easily be replaced. The verdict is still out on both attempts to teach my young ones about nothing being free.

Handling an allowance. Make sure that she learns to live with the allowance she’s given and to meet any expectations for it that you might set. For example, this may include a modest savings plan to pay for things she wants.

OK, I’m not sure about this part. I’m honestly not sure about how to introduce an allowance. So far, I’ve tried to connect chores to fun activities and rewards (rewards sometimes being the pride in a job well done). I’ve read that it is ok to connect chores to payment too as this will teach kids that they have to work for money. I am thinking that it might teach them that the only value in a job well done is its monetary equivalent. I haven’t decided. I do know I am going to give an allowance when they hit elementary but i’m still fuzzy on how to teach this. Suggestions anyone?

I hope I’ve listed down some helpful suggestions for getting started on the money lesson. I guess at the end of the day, I really want them to learn that they need to understand and value money, that it IS important, but there are other important things too like going for excellence, and being cautious, etc. This is a work-in-progress for me so any other tips are highly appreciated.

Have you explained money and value to your children? What prompted you to discuss it?

Teaching Children About Money

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kids and moneyTeaching our children about money may sound easy to do but many times it is not. As our children get older they will begin to understand more so don’t give up and think your children will always think money just appears.

When children are about 5-6 years old they seem to love collecting coins. This is a great time to start the “piggy bank” or “money collection”. As they get a bit older they begin to understand that each coin has a different value. And when theses coins are added up it is enough to buy something that they have been wanting.

So how do we as parents begin to teach them the value of money and how to save? This is not an easy task at times but it is a very important lesson. Teaching our children to save for a certain item not only teaches them self discipline but also allow them to set goals.

Allowances and Chores

In many households the parents reward for chores that are completed by giving the child an allowance. By earning the money the child feels good about the accomplishment and then is able to save the money earned to buy something.

If the child wants something of a larger value the child will then have to save for it. This may mean more than a week worth of chores. And be warned, there are those that do not want to wait and will asked to be paid ahead of time. What we tell our children is that when a job or chore has been completed that is when they will receive the allowance. We do not pay for chores that have not been completed yet. By doing this we are teaching the child that things have to be earned. There is something about actually earning what they have bought that makes the child seem much happier with the item when they are finally able to buy it.

Saving Money

The next lesson is teaching about saving money. How much is the right amount to save? This is up to the individual parents. Some teach their children to save more while others just have their children put away a small amount to get the hang of saving up money.

When children get a bit older and have small jobs they are then able to set bigger goals. As they get older the “toys” also become more expensive. What was once a small truck or doll now may become a cell phone or video game. We as parents know just how expensive the “toys” can get.

It takes time to teach our children about money. With time and patience they will be saving money as well as setting goals for items that they want.

Do you have any ideas on teaching our children about money that you have used or are planning to use?

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