Throughout history every generation usually comes to the same conclusion; that the one after them is lazy, spoiled and entitled. Whether or not you can make broad generalizations about an entire generation is arguable, we’ll set this aside; here, is a one-size-fits-all guide to how to teach kids about the value of money.
Make it real
In the digitised age where monetary exchanges are done on screens by sending electricity through the air, trying to get kids to understand money could seem pretty difficult. While obviously we aren’t suggesting you sit your kid down and teach them about Bitcoin, it might be better instead to let them hold money and learn through the physical exchange so through this they can visualize transactions and make sense of them in their own heads. Make sure they watch as you pay for things with coins or notes.
Hand it over
In order for kids to understand money it’s probably best they have some of their own. This will give them a sense of autonomy over themselves. You don’t have to make them work for it just yet (that comes later!) just give them some from the tooth fairy or for a birthday present and see what they do with it. They can learn by trial and error as they navigate saving, spending and the basics.
Chores around the house are a natural part of learning to become a self-sufficient adult. It’s worth giving them small tasks to do not just because they are an essential part of growing up but also because if they are paid for them they learn the worth of their own labor as well as money. It’s a key incentive when it comes to actually working. By being paid for work they come to realise the benefit of working hard early on.
Jot it down
This is one I’d say some adults need help with from time to time. Managing your finances is all about keeping a record of them. In today’s society you have bank balance statements and apps that help you remember but it’s always good to start physical before you wrap your head around electronic versions. Teaching kids to write down how much they spend and how much they saved can teach the benefit of saving by illustrating how one actually accumulates wealth.