Teaching Your Kids About Money

It can be tricky to teach your kids about money no matter what their age. Starting when they’re little can help them learn the value of money right away.

Learning About Dollar and Cents

I'll never forget taking my son on our first mother-son date. I gave him cash which he put in his pocket and we went to a movie and dinner. The purpose of the date was to teach him how to act like a gentleman opening doors and paying for the bill. When we arrived at the movie he took all of the cash that I had given him and left it on the counter, smiling from ear-to-ear. He was so proud to be paying for a movie date. What he didn't realize is that he had put $60 up on the counter, far less than the $20 movie. That's why I decided it was time to teach my son about money. 

Getting Started with Lessons About Money

We started with talking about change and how much each coin is worth and what you get when you add them together. We then talked about paper money and what you get if you break bills into change. One concept that has been especially difficult has been translating for my boys the difference between cash or change and checks or credit cards. In a world where so many things are purchased digitally, the boys have decided that if Mom says something is too expensive we decide on Amazon because it's free or you just put it on your credit card because it's just some plastic and not actual money. The concept that you still have to pay for items you buy online or with your credit card was a little difficult to understand.

Spending and Delaying Gratification

I think it's important to teach them not only the value of coins and bills but also the concept of not spending more than you have. I've heard the joke many times that having children is like having a broke friend who thinks you're rich. Until children understand the concept of money, everything is “within reach” because they just asked for it. Just like adults need to utilize delayed gratification, teaching our children to delay gratification and using a reward system can be beneficial. 

Reinforcing With Rewards

When it comes to things like books, educational learning activities, and tools to help them become better, more enriched individuals, I am less concerned about cost. When it comes to things like gaming systems, new games or toys I know they will play with for one month and then discard, then those things have become part of the reward system at my house. Rewards can come from learning a character counts lesson in life, getting good grades and getting good feedback from their teachers translates. I only reward the behaviors that I want to reinforce. This leads to not only teaching them the concept of money but also trying to teach them the concept of delayed gratification and working hard for what you want.