How to teach kids about earning money!

by Avi C. Helping kids learn about money

The importance of teaching your kids the value of money and making it in the first place can’t be emphasized enough. If you have decided to teach your children such values at an early age, then you have landed on the right article. There are a number of activities that you can perform with your kids in order to make them learn the importance of money and earning it. We have taken the liberty of mentioning some crucial steps that will improve the understanding of money for your children. Without further ado, let’s dive into the process.

Making Money: Before you continue with the activity itself that teaches them

the importance of earning money, it is of prime importance to familiarize your children with the concept of making money. Make them realize that adults have to go out and work for a particular amount of time using a few of the skills that they may have and in return they are provided with a defined amount of money. Once they are familiar with the very concept of earning money, then you can continue with the next lesson that they need to learn about financial matters at an early age.

Salary: Now may be a really good time to familiarize your kids with the concept of salary. They should know that for the amount of time that adults spend on working, they are given a particular amount of money that is known as salary. Remember to let them know that not every person gets the same amount of money and the difference between the salaries can be a huge one. Pour the idea in their mind that it is a worst decision to spend more than your salary. As a matter of fact, a part of the salary should always go in the savings account.

Once done, now you can perform a few activities with your children in order to make them earn some money for their piggy banks and see the entire system in action. For instance, you can correlate the house chores with small amount of money. Teach them how to mow a lawn or wash the dishes and once they perform the activity, let them have the money defined to it. Don’t forget to keep different amount for different tasks in order for them to grasp the idea of having a job in an appropriate fashion.

Last but not the least, it is of prime importance to correlate the performance with the amount of money earned. It does also let them comprehend the idea of promotion. Provided that they are consistently performing well in the house chores that you have appointed to them, raise their allowance on it as well. And don’t forget to correlate the allowance with physical activities like sports. Whatever sport they like, make small checkpoints for them and once accomplished, let your kid have a small amount of money. This encourages physical activity in your children that is absolutely important for their health.

While earning money is one part of the puzzle, there are other topics that need to be taught to your children: Recognizing and adding currency, Spending money, Saving money, Growing money. Websites such as Miss Fingy are dedicated to making financial literacy more accessible to kids. Miss Fingy website provides tutorials, fun activities and games that you can engage with your children to guide them towards a great financial future.