6 ways to talk about money with kids
We are now reading ‘Emil and the detectives’ by Erich Kastner and the first chapter starts with Emil’s mother handing Emil her hard-earned savings to give to his grandmother. Emil has a tough job to travel alone to Berlin with this money in his pocket!
The chapter sparked conversation about money. It is never too late to talk about money with kids and here are six ways to do so.
Use a clear jar to save money: Kids can visualize the clear jar. If they have taken any money from the jar to spend, they can see this through the jar. And if they add money, make a big deal and talk about growth!
Show that stuff costs money: It is never too early to show kids that things cost money. Don’t nag or lecture but instead let the kid experience the transaction. They can use the money from their jar to buy the snacks.
Opportunity cost: By the age of early as 8, kids would know how to weigh their decisions and contemplate possible outcomes. Give kids the opportunity and options, for example by explaining, “Okay if you want to buy the video game we will not have enough money to buy the shoes you wanted.”
Money is earned: It is important to teach kids as early as possible that money is earned. Instead of giving allowances, give commissions on the chores and for helping around in the house. This way, kids develop gratitude too.
Set by example: Kids see you when you impulse buy, when we argue about money, when we budget and whether we walk the talk or not. So try to set a good example.
Importance of giving: And finally, teach your kids about the importance of giving and charity. Giving not just money or things but also their time to others in need.
