What is the best way to teach kids the value of money?

Answer 1

Pay them for chores, and make them pay for priveleges. That's what we adults do, but on a larger scale. Adjust your rates accordingly, and teach them to budget. (Vaccuum the living room=$5.00/a happy meal=$3.99, sort the laundry=$3.00/go to the movies+$7.00.....they need to work harder to earn more to pay for this)
Then, show them what jobs pay what, what things will cost, and how long they have to work to pay for those things. This will teach them to prioritize needs vs. wants.
We adults get confused by "credit" and we lose sight of how many hours it will take to pay for something. Teach your kids about that when they get older, but BEFORE they are old enough to become eligible for credit cards....

Answer 2

Oh my, this is such a hot topic! I've been trying to teach my brother for years how to save his money, but a lot of it is started in early childhood.

Start by giving your children a meager allowance (such as fifty cents per week or a dollar per week) when they are between 4 and 10. Make them put half of this money in their piggy bank, and tell them that they can spend the other half. After a few weeks of this (or maybe even a few months), have them open up their piggy bank to see how much they have saved. Many children will be quite surprised to see how much they have saved without even thinking about it.

Soon, children will want to save their money, and after the piggy bank gets full, teach them about banks. Take them to a bank to open up a bank account, and have them put their money in the bank. With intrest, they will grasp the concept early on.

Once your child is over ten, start setting extra chores out for them so that they can make extra money. For instance, I recieve a dollar per day if I have my room clean, wash my dishes, and take out the garbage. If I don't do my work, I don't recieve that dollar. That teaches me that, in order to be able to buy the things I want, I must work for it. Working for your own money simply teaches kids that the money they have earned means something. They will spend less of it and saves once they realize that they have to work for it.

Once your child is a teenager in the workforce, make them put aside at least half of their paycheck so that they have money for their car or whatever else they need. Again, they will learn that they have to work for money, and that it is more valuable.

Blindly giving children money isn't a good thing to do. It causes kids to take money for granted, and they lose the value of the dollar. Still, though, if your child is in need of some cash (for, let's say, a field trip, school activity, new outfit, prom dress, etc.) go ahead and give them some extra cash, but make sure that they pay atleast a little bit of their way.

I will be going on a trip in April/May of 2007 with my choir, and it will cost 400 dollars or so. I will get some help from my mom, but I am willing to pay half of my way using the money that I have saved over the year in my bank account.

I hope that this information has helped you out with teaching children the value and meaning of a dollar.

-Lella^_^

Answer 3

Old school rules. Getting payment for extra chores, good grades, doing something above and beyond duty. Is a good start.
Then teaching them how to save. Choosing something they really want. Explaining how to save and work for it. Then watch their face when they purchase something they worked for.
Also explaining how being wasteful, cost money. Leaving things out that will spoil. How you will have to spend money to replace it therefore it takes away from either doing something fun or purchasing something else.
Most kids think money grows on trees.

Answer 4

Easy. If they do their chores give them a dollar for each chore completed. Once they've saved/earned up a lil dough take them shopping for something. Oh, very important lesson on value of money...if they should break something inform them they'll have to pay $2 for each item broke...they'll get the hint then.

Answer 5

Depends on their age. However even if they are little you can teach them about working for money.
If money is always something that is given to them, then they will never really appreciate the money.
If you teach them how to work for their money, they will feel "ownership" of the money, and they will know how hard it was to earn the money, and they are less likely to just "blow" the money.

Answer 6

Create a store of things your child would like to purchase.. for every chore they do they earn money in a jar. At the end of the week let him shop with his money in the store you have created.

Answer 7

My daughter earns an allowance based on the number of chores she completes during the week. Whenever she wants something like ice cream from the ice cream man or candy from the store she buys it with her allowance.

Answer 8

Make them earn the money with jobs around the house or yard.

Answer 9

dont give them money every time they ask for it,make them earn what they really want,when they are old enough make them get a job and start paying for the things they want with their own money

Answer 10

Start giving them an allowance for work done around the house. Then when they are old enough, send them to work.