Children and the 'Money' Tree

How many times have you used this phrase with your child, Money doesn’t grow on trees? Once, twice, a million? It seems this sentence is almost a right of passage into adulthood. And if you have not said it at least once by now, you soon will! However, after you use this statement, set the stage for some lessons to help teach your child the value of money.

Where Money Really Comes From

One of the first ways many parents choose to teach their children about money is through a “piggy bank.” Even starting as young as age 3, introduce your children to the piggy bank concept, and show them how to use this type of bank in order to save coins for future purchase. Is your child a fan of the ice cream man? Let him begin using piggy bank money to pay for the ice cream. This way he’s able to see cause and effect at work—he put coins in his piggy bank, and it allowed him to purchase an ice cream.

Budgeting is another important tool when it comes to money. If your child is at the age where you feel she deserves a weekly allowance, then give her a set amount each week. Then, once you have given her the money, tell her once it is gone for the week, it is gone until the next “pay” day. This method allows kids to learn how to make their money last through the week instead of spending it in a day. Just watch. Once they make the mistake once, the mistake will hardly occur again.

If you want, you can give them chances to earn more money through extra chores so that they do not go in “debt.”

Are you ready to start teaching your children about the power of saving? Visit us today so that one of our friendly and knowledgeable associates can help you set up a MOOLA Savings Account for your child!