How to teach your child the value of money

Money is a topic often learned from your parents. There are many aspects to money like how to earn it, save it, and grow it.

What's important in all these aspects is your money mindset. An important part of your money mindset is understanding the value of money. While you might not want your kids to become obsessed with money and riches, you want them to appreciate the hard work that goes into it making a dollar. You want them to appreciate that everything they have was likely purchased with money.

Here are ways you can teach your child about the value of money.

1. Read money books to your childOne of the best ways to teach your kids about the value of money is through reading. Here's a list of money books for kids that will teach your child about financial literacy and money management. This list is for books from age 3-14. There are books with fictional and non-fiction stories, activities and worksheets for an entertaining and fun read! The book topics range from the history of money to the banking system to how to make and save money.

1. Give your kid 3 piggy banksOne piggy bank is for spending, but the other 2 are for saving and giving. When your child gets an allowance or makes money, you can teach your child to split the money equally or close to equally so the same amount goes into each jar. Doing this process teaches your child the healthy money habits of allocating some money towards savings and giving. You can mimic real life situations by adding more money to the savings jar like how money would attain compound interest in a savings account.
2. Encourage your child to get a jobHaving your child get a job shows them what it feels like to have to work for money. The job could be a temporary lemonade stand or manning a yard sale. Getting a job is one of the best ways to help children realize how much time and effort goes into making just 1 dollar. It'll make your child appreciate every dollar that much more!
3. Explain about financial goals and help them create a goalDiscussing financial goals helps children visualize and map out what money can buy. It puts a value on money. The financial goals can be monetary like saving $1/day or tangible like buying a toy. What I like about establishing financial goals for your children is how it teaches them to be goal-oriented and focused on achieving an outcome. It also encourages them to be strategic and creative in reaching that outcome.
4. Open a bank account If your child is old enough, you can help them start a bank account. This teaches them about the banking system and how cash can gain interest in a savings or investment account. It's also never too early to start saving. The earlier they start their savings journey, the better off they'll be financially in the future.

Hi! I'm Jacqueline. I write about making and saving more money, frugal living, and parenting money tips at www.mommoneymap.com.