My mother-in-law is very generous when it comes to giving my children money. It usually comes in the form of $5 or $10 bills inserted into holiday cards or in person during the twice-a-year visits, at which time she chooses to hand them money in a covert way; a sheepish attempt to hide the fact that she’s spoiling them.
During a recent visit to the local grocery store, my 5-year-old, carrying one of these $5 bills, passed in front of this display of miniature cars that read “4 for $5.” He was pretty excited about the “deal” and continued to make his selections.
At more than $1 per car, I failed to find the deal in that, but I proceeded to praise his ability to find such a bargain. As we were leaving the store, I asked him “Why do you think the store was selling those cars for that price?” to which he promptly answered “maybe they really like kids.”
How early in our children’s life should we begin to teach principles of sound money management?
What can parents do to teach their children about money?
As we strive to establish other good habits in our little ones, many parents ignore financial awareness. But, as with everything else, most children start acquiring life-lasting concepts from a very early age and basic money management skills should be as gingerly peppered around given learning opportunities.
Lessons about money can begin as early as you notice that your child can instinctively assign value to his or her belongings.
But you have to get creative.
When my wife and I go shopping for groceries, for example, we give my son his own shopping list. We write down a dollar amount next to each item and help him to find a matching or lower price. In addition to keeping him focused on a task and busy while we do our shopping, he is learning important concepts about value along with simple math skills.
There are many ways to turn daily consumer moments into lessons. As your child grows, he or she will sense a meaningful connection with money and goods, learn to make good decisions on how money received is to be spent or saved, and the financial mistakes they make will be fewer and occur much earlier in their lives instead of when it really counts.
We read books to our children every day and they grow up to love reading. In this same manner you can help your child develop early financial awareness and interest.
Finally, whether or not you believe it, your children do pay attention to everything you say AND do, so get control of your own financial life!