Whether they encouraged us to work every summer to learn the value of money or willingly bought us everything we have ever wanted. Each approach has left a mark on our budgeting habits. However, teaching your kids about budgeting and the value of money can be a very challenging task.
Here is why we will introduce you to a few ways to easily teach your kids the basics of budgeting.
1. Explain more
Yes, we know, kids have about a million questions a day. We also know that it can be very tiresome to answer all of them, let alone with a proper explanation. However, some of their questions cannot be neglected. Use every opportunity to explain the value of money. You will see that with time, your answers will leave a strong mark on your children’s habits.
2. Don’t encourage their impulsive wants
When kids want something, they become impatient. That often results in an ugly scene in the middle of a crowded store or a busy street. Many parents cave in exactly at that moment. Never forget that kids are extremely clever. They know when and how to push your buttons to get whatever they want. Once you are put in this situation, try to keep your composure and never let yourself answer their impulsive wants. Explain to them that they can’t always have what they want.
3. Pocket money
Nowadays, it is hard to figure out what is the proper amount of money for a daily allowance. Especially considering the fact that we often compare ourselves to others. Unfortunately, kids do the same. So, suddenly you have to explain why other parents are doing certain things differently. Try to educate your children to always be self-aware and pay less attention to others. Giving them just the amount of money that they need, not want, is a good way to teach them how to handle their daily expenses.
4. Summer or part-time job
If you have a teenager at home, the chances are that you are in trouble. It is a crucial time for all parents in many aspects. It is also the time when it is most appropriate for your children to begin working. By encouraging them to take on a summer or a part-time job, you will teach them that if they want something, they will have to work for it. This will also help them understand how hard money earning is and how you shouldn’t spend all of your hard-earned cash on the first thing you see.