Parenting Vivian | 22 Feb 2010 11:01 pm

Teaching Your Child To Value Money

We as parents are working very hard to earn good money to provide all the needs of our children. We make a lot of sacrifices including our health and sometimes the time to be with them. With this, we must teach our children to value money not only to save but also to prepare them when they are old enough to work. The earlier you teach them, the better. So when your child starts to understand what money is for, here are very useful tips on how to teach them to manage money properly:

Let him know your work. If your child sees you look tired from work, you can tell him that it is because you have to earn money for his needs. If you do this frequently, he will somehow be aware that earning money is never a joke. By explaining to him how a simple business works and grows, he will be able to conclude that money is very important to his everyday life. In addition, you are also making him feel that you are doing all your best to give his needs.

Teach him to how to budget. If your child is about 11 years old and above, you can start training him to handle his own money by giving his allowance on a weekly basis instead of daily. Let him control himself from buying unnecessary things even if he has money on his pocket. If he does so, do not give him extra money and let him suffer the consequences of his action. By doing this, you are also teaching him to be strong from temptation.

Require him to work for it. Yes, you read it right. Require your child to work so that she can feel how hard money is being earned. Teach your child about simple household activities like washing the dishes and give her money. But you must be careful in doing so because she might always demand for money before doing something. You should be clear in explaining that she is under training and the money for her salary and not a reward.

Show the negative effect. Let your child watch the news about poverty and the economy. He should understand how fortunate he is to enjoy living without working. Make him realize the good effect of handling money properly by showing to him actual street children and homeless families struggling hard to survive. These images will stick to his mind and he will be reminded that someday that he can be joining them if he will be wasting money.

Do not waste your money. Of course, you cannot teach your child to save money if you are wasting it. Explain to him carefully whenever you buy something that does not look valuable to him like jewelries and other accessories, and that can also be an investment. Although you have the right to enjoy the result of your hard work, you should show your child the difference between proper spending and overspending.

Although money is not the only source of happiness, it is still necessary for our children to understand its value and how to manage it.

I am a Filipino engineer who found himself more comfortable in writing letters instead of numbers, and interacting with humans rather than machines. For more tips about child care, health, growth and development, safety, education and all about effective parenting, please feel free to visit Effective Parenting Tips at

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