Friday, January 22, 2010

Teaching Kids about Money

Do you have kids? Do you think they are smart enough to handle money themselves?  Before I answer that question, let me share with you this video that a commenter shared.  It is about a research conducted to see what kids will do or buy when given some money.




I don't know how representative the respondent of kids were in this research.  Whether they were from a representative population of the class A, B, C or D. In any case, I do believe that kids are capable of learning how to handle money if they are properly taught how.

As for our children, we teach them the value of money.  We tell them that money is not something you just get easily, it is hard earned.  So, when we go out for shopping, when they find something that they want to buy, we ask them "Do you really need that?"  Early in childhood, they should learn what is a need and what is a want.  It doesn't mean that we don't buy them what they want like a food item or toy, but not all the time.

We also set them an example in wise buying.  They see that as I buy from the grocery, I compare prices and buy that which gives more value for our money, not necessarily buying the cheaper items. 

We also teach in small ways that if they want to have some money, they have to earn it either by doing some chores.  And when they excel in school, we reward them with some money instead of just giving them all those allowances.

Lastly, we teach them to save - not just buy and buy and to give to the Lord.  As Christians, we see it to be important to teach them giving to the Lord as an act of gratitude to God's many blessings.

How about you, how do you teach your kids about money?

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