We talk about money in front of our children all the time: when we’re discussing bill payments at dinner, when we plan to get a discount, when we’re debating whether something is affordable or beyond our budget. Whether or not you bring it up, they’re being exposed to these conversations. They have some idea of the importance of money—but do they understand how to be good with money?
Why Teaching Your Children About Money is Important
Most parents do give their children a small sum of money every now and then. Kids usually go off and buy their favorite candy bar with it, and of course, there’s nothing wrong with that—but to secure their long-term future, some other conversations are in order.
The first thing you need to tell them is this: money isn’t free. You might be surprised to know that many children think that money is, in fact, free.
So, tell them where it comes from. Explaining that you work hard for it will teach them that it needs to be valued, which is an important life skill.
Buy Them a Piggy Bank
In addition to giving your children a regular supply of money, it’s vital to teach them how saving works. Lack of savings is a huge problem in our society as most people have very little savings in their banks. To get more specific, 45% of Americans have no savings. A lack of savings entails a hand-to-mouth life, with lots of uncertainty. The value of savings could not be more evident at a time like this when due to the COVID 19 driven pandemic, economic activity has slowed down significantly and a huge population of the world has taken a big hit on their earnings.
As a responsible parent or educator, you need to inculcate the spirit of saving money in your children. A piggy bank is a great way to do this.
Introducing Interactive Programs at Schools
If you run a school, one of the best options is to introduce something like a treasury. Giving the responsibility of collecting, maintaining, and regulating money to students can go a long way. It not only instills a sense of responsibility, but also makes them cognizant of the importance of the task. Saving and securing, spending consciously—all of it prepares them for the future. Other fundamentals concepts such as the cost of money, the difference between spending and investing, basic understanding of interest rates etc. are critical for managing one’s quality of life. These are valuable lessons that all schools should be teaching, early on.
Another option is to enroll children in Entrepreneurial STEAM™️ focused Educational classes , such as the one offered by COMPUCHILD. Our program focuses on valuable logical and analytical skills that help children have a better understanding of money. You can even own a STEAM franchise with low investment if you’re in Canada or the U.S. Find out more details by getting in touch with us.
Find out more children’s education franchise opportunities here.