Wanting to inspire children to form foundational and healthy life habits for the future is a trait that most if not all moms have in common. Although raising kids to maintain smart money management habits may appear difficult, it is not an impossible task. As you look for ways to demonstrate money management skills to your kids, consider the tips below on how to teach your child the value of money.
Save Up Yourself
First and foremost, moms who inspire their children are women who lead by example. A great way to encourage your kids to save is by showing them each and every day how you save up for things for your family.
The next time you’re planning a big vacation, for example, start a household change jar that everyone can contribute to, including your kids. You can even DIY your own savings goal chart and have your kids help you fill it in every time you add money to your savings.
Allowing them to physically see the your savings increase towards a goal that benefits your family is a great way to inspire them to want to save in the future. As your kids get older, make them more aware of your monthly expenses by showing them just how much you set aside for simple things like groceries.
Most moms are aware that their youngsters want to splurge on the latest and greatest brands. From choosing between the popular cereal over the store option, to opting for Sketchers over Nikes, getting your kids excited about less popular products can be difficult.
A great way to combat this tendency for the finer things in your kids is by teaching them about smart shopping. When you concentrate on how to teach your child the value of money from a young age, they can take this skill throughout their adult years. Hopefully doing so will help them to avoid debt as an adult.
Start by showing them how to compare prices, and where to find the sales racks. Use stores like Marshalls and TJ Maxx to shop for brands they can get for less the next time you give them their back-to-school clothes budget.
Encouraging thrifting is another great way to get gently used looks that look brand new for less. Your kids will be able to save on their favorite brands by shopping great styles at online thrift shops like thredUP. You might even be able to find your new favorite comfy Lularoe look for a better price if you choose used as well.
Share in the excitement with your kids when they spot a great find for a low price too. Then you’re sure to inspire them that saving with sales is the best way to shop.
How to Teach Your Child the Value of Money? Be Self-Reliant
While most moms are self-reliant in many ways, this fact might not always be evident to kids. The reality is, your children need to learn that having the will power to save begins and ends with the decisions they make themselves.
While borrowing money when in need is sometimes necessary, try not to make it a habit, especially in front of the kids. Instead, teach them the importance of providing for oneself but also still being generous. (If you’re struggling financially, this guide may help you).
Exactly what that looks like depends on your family and lifestyle. It might mean that you pick up the tab the next time you all go out to eat with friends, or that you’re willing to loan out one of your extra vehicles to another mom in need.
Strive to be someone who others can come to as doing so will inspire your kids to pay it forward in the future. Self-reliance is a quality that you can use to ensure your kids are equipped with the right life skills to save and provide for themselves when they go out on their own one day.
Help Them to Save
Perhaps the most obvious tip for how to teach your child the value of money is to personally help them along with their savings goals. Whether you do this by giving them a regular allowance, or by purchasing them a piggy bank, the possibilities are both simple and endless.
Help your kids set goals for the items they want beyond simply adding those toys to their birthday or Christmas lists. If your child succeeds in saving up enough money to buy an item they’ve had their eye on for a while, be sure to praise and reward them for how hard they worked at it.
You can even develop a system of rewards at home should your child save up for the things they want frequently, as this will encourage them to make it a habit. As your children get older, work with them to set up a savings account for their summer cash and for the money they earn at their part-time job.
Conclusions on How to Teach Your Child the Value of Money
If you begin to help your kids cultivate money management skills at a young age, they will surely feel enough inspiration to carry them on later in life.
What are some other ideas for how to teach your child about money?
43 thoughts on “How to Teach Your Child the Value of Money”
what an awesome article! I wish I had something like this when I was growing up. And ditto on the comments about schools. The only financial education I remember from school was a simple afterthought about the stock market and not a dedicated class on finances.
One of the things that I’m really grateful for is exactly the way my parents taught me how to use money. Maybe not consciously, but they followed those exact same steps. I really appreciate you sharing them.
That’s wonderful to hear that your parents showed you core values that you take with you now. And your appreciation for the post is wonderful.
Have a great week ahead!
This is great perspective and valuable learning for many of us, even later in life it’s easy to forget this!
It’s such an important skill! Thanks Lou.
I love this article because I am a 16 years old boy who grew up having money but never spending it. I’m grateful to my mom because she thought me the importance and the use of money.
It sounds like your mom did a great job showing you the value of money!
Thanks for sharing it. Really important lessons for kids…
Absolutely right, Christy. In this world of instant gratification, these lessons could not be more important to share with our kids.
Amy, this comment means a lot to me xx
Thanks for sharing these lessons!
Appreciate it, Kim.
These are great lessons, Christy, and very important for independent living. It’s something we all need to know.
Yes, money management is an important skill to have.
All the best
Very relevant message
A friend of moms was a school teacher in our area some time ago. She taught elementary school including math. She would take dollar bills and coins using them to allowing children to count. She told me this herself some years ago as a retired teacher and I thot this was the most brilliant idea technique known in education.
That’s a wonderful tip!
Very informative and helpful Christy.. we did not get much pocket money, but when I began my part time job after school and at the weekends I would give my parents 25% and the rest was to buy any clothes or extras that I needed and I loved my semi-independence.. It taught me to budget and also that having a roof over my head and food on the table came at a cost.
It sounds like you had a solid footing with money right from the start, Sally. Thanks for sharing your experience here!
Hugging back xx
A great post. wish I had read this a few years back.
very important lesson for childrens
Great advice Christy.
I taught my kids to save pocket money, so they would be able to buy, what they wished for.
If it was a very expensive wish and I found it fair, I offered to pay half of the wish, when they had made their own savings. Today both are adults and very good to take care of their economy.
Oh Irene, how wonderful to hear from you! I do hope you’re doing well. It brings me great joy to see you here xx It sounds like you taught your children well to understand the value of money.
Thank you Christy. Sometimes I think, that my kids are better to manage their money, than I am.
You learn from one another! xx
Somewhere between early childhood (small allowance & a piggy bank) and being old enough to get a part time job, allowance should increase, but only with work/chores done at home. Learning a relation between working and earning seems like a good idea.
I like how you think, Resa! Giving money “just because” isn’t really on my list of awesome things either. PS No spam on you, this comment was published!