How to teach children about money

Posted by iChild, September 18, 2019 12:49 PM

By Charlotte Baldwin of IQ Cards

Money is often a subject people get hesitant to talk about - some are very open about the subject whilst others would rather keep quiet about it. Therefore, when teaching children the value of money, many parents can find it difficult. In maths lessons, children learn times tables and basic addition, but the subject of saving is something most need to understand better. Here, Charlotte Baldwin of IQ Cards shares her tips on how to teach children the value of money, why it’s important and how they will use the lessons learnt in later life.

GettyImages-1001817774

Goals and Rewards

In order to help children engage with the idea of saving money, try to use real cash or a symbolic token, such as a gold star, when they have achieved something positive as a replacement for automatic rewards such as sweets. This way you can help your child understand the concept that with a certain amount of tokens they are able to afford a treat they wouldn’t be able to get with only one. As a parent, you could set up an exchange system for your child to exchange their tokens for different prizes, making certain prizes worth more than others, just like an arcade system. By comparing it to this, it can make the idea fun for children and instils the idea of saving from a young age. This process can also allow children to understand that you are not able to buy everything you would like automatically; however by saving money, you will be able to buy it in time. Having a visual representation for children is a good way to make them want to achieve more - you could have a chart or jar in which they can store their gold stars.

GettyImages-913245664

 

Start Saving

It’s never too young to start saving, whether that be the pocket money children receive every week or the gold stars that can lead to a reward. By encouraging your children to save, they can learn the value and satisfaction that comes with saving. When your children are young, they can save their pocket money for two or three weeks and see the difference the money can get them as they save more. As the children get older, they can begin to save for their dream purchase and understand what they can do to achieve their goal quicker, for example working additional hours in the school holidays or selling unwanted items online. Once their purchase has been made, they will better understand the value of saving.

GettyImages-1026164122

 

Lead by Example

Once you have instilled the idea of saving in your children’s minds, make sure all of your hard work doesn’t go to waste when you leave the house! If you keep budgeting as a topic that is regularly talked about, your children will understand that it is something that needs to be thought about in many situations. When your child is desperate for a new toy, instead of buying it straight away, add it to their goals and show them how many gold stars they will need in order to get that toy. It’s extremely important for your children to understand that when they want something they may not be able to have it - this concept will give them an understanding of finances and teach them to be cautious when spending.

GettyImages-860940016

Stress the Importance of Giving

Teaching children the importance of giving is an essential life lesson. A good activity for your children is to let them donate to a chosen charity or help an endangered animal by adopting them, let them see you donating to the charity. It is a good idea to show your children what work the charity does so they can understand where the money goes. This can help children understand the importance of giving money and the effect of donations.


About The Author

Charlotte Baldwin – Operations Manager at IQ Cards:
IQ Cards is a fundraising company that provides schools and establishments with the necessary tools to fundraise via selling high-quality and unique gifts designed by pupils. As part of the established on-demand print and digital solutions provider The IQ Digital House, IQ Cards ensures that all requirements and products are produced to the highest standards, delivered on time and at great value prices. Several of the IQ cards team are mothers and PTA members themselves appreciating and understanding school protocols extremely well. IQ Cards is an approved supplier for Parentkind. For more information please visit: http://www.iqcards.co.uk/.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment