How to teach your children the value of money
Going shopping with your children is usually the same story, ‘I want this’, ‘please can I have that’. They can’t understand why your answer is no, because young children don’t understand the concept of money. Teaching your children the value of money is a vital life lesson that they will continually use in years to come. PIWoP, the price drop alert tool, know how important saving money and looking after your finances is. Here are their tips on how to teach your children the value money.
Give them an allowance
The best way for children to learn about money, is by giving them some. Receiving pocket money in exchange for completing chores shows them money needs to be earnt. £2-3 a week is a good starting point to get them used to handling money and being responsible for their own finances.
Encourage them to save
Help your children set saving goals for more expensive toys. If your child has their eyes on a toy they cannot afford yet, explain to them that they will need to wait a few weeks for the toy- as they haven’t yet earnt enough for it. This will teach them that patience pays off. Piggy banks are a great way to encourage this, as they can be a fun way of seeing how much they’ve accumulated.
Young children will only want to learn if it’s fun. Turn saving money into a game, try going around the supermarket to find the cheapest bread for example. This will give them practical experience and understanding of buying essentials.
Go bargain hunting
Visiting charity shops and car boot sales is a fun way of showing children they don’t always need the newest and latest items. They’ll see their money can go a lot further when they find bargains and discounts.
Educational computer games let children have fun whilst learning. PIWoPcan also be used as a tool for learning. Your children can create a list of items they want but can’t yet afford - like a certain bike or video game, or anything off their Christmas list.
They can then set prices; the tool will then notify them when any items are reduced here, or below. It therefore teaches children not to impulse buy, but the value of waiting and saving. It's probably a good lesson for all of us!
For more information on PIWOP, visit https://piwop.com