How to teach kids about earning money.
As parents, one of the most important things we can teach our children is how to earn money. It’s never too early to start talking to your kids about the value of money, how to save it, and how to spend it wisely. One of the best ways to teach kids about money is to help them EARN it. When kids EARN money, they learn the value of hard work and delayed gratification. They also learn how to budget and save for their goals.
Tips on how to teach kids about EARNING money
Start early. The earlier you start talking to your kids about money, the better. Even young children can understand the basics of earning, saving, giving and spending.
Start with the basics. Begin by explaining that money is something people use to buy things they need or want. Emphasize that people earn money by working, whether it’s a job, a chore or running a business.
Be a good role model. Kids learn by watching the adults in their lives. If you want your kids to be responsible with money, it's important to model that behavior yourself. Talk to them about your job, how you earn money, how you save and give. Encourage them to ask questions and be open about your financial situation.
Make it fun. Learning about money doesn't have to be boring. There are many fun and educational games and activities that you can use to teach your kids about money. For ideas, check out the ACTION ITEMS below.
Teach them to save. Teaching children to save money is an important lesson that will serve them well in the future. Encourage children to save a portion of their earnings by setting up a savings account or putting aside in a piggy bank to make it more visual.
Be patient. It takes time for kids to learn about money. Don't get discouraged if they don't understand everything right away. Just keep talking to them and answering their questions.
With a little patience and effort, you can help your kids learn about money, instill a strong work ethic and develop healthy financial habits that will last a lifetime. No matter how you choose to help your kids earn money, the most important thing is to talk to them about it. Explain to them the value of hard work, delayed gratification, and budgeting. Help them set financial goals and teach them how to save. By teaching your kids about money, you're giving them a valuable life skill that they'll use for years to come.
ACTIONABLE ITEMS
Tips for talking to your kids about EARNING
Money is not free, it is earned.
ACTION: Give your child a small allowance for doing specific chores around the house to understand the concept of earning money
ACTION: Make it fun - create a scavenger hunt around the house, where your child has to complete a list of chores to earn coins. Set up a lemonade stand or bake sale, where money can be earned by selling goods.
ACTION: Set up a reward system. To help your child understand the connection between work and earning money, set up a reward system at home. By doing so, it will show that hard work pays off.
Earning money involves work.
ACTION: Take your child with you to work one day to show them that what you do to earn money and that it takes work. Verbalize what other members in the immediate and/or extended family do to make a living.
Money is in limited quantity. Once you spend what you have, it’s gone.
ACTION: Give your child a set amount of money to spend on a trip to the store. Once they spend what they have, it’s gone. Help him/her to make wise choices on what to spend it on.
There are different kinds of jobs that earn money.
ACTION: Point out different jobs as you go throughout the day (ie. postal worker, store clerk, doctor dentist etc). Talk about the different jobs people have in the community.
There is a difference between shared responsibilities and responsibilities that earn money.
ACTION: Talk about the different responsibilities each member has in the family. Understand that each family may define this differently. Examples that don’t earn money (ie. helping set the table for meals, cleaning up toys after play) vs examples that may earn money (ie. mowing the lawn)
Encourage Entrepreneurship by encouraging an imagination
ACTION: Have your child imagine ways he/she can earn money. Ask questions like, “How would you make money if you could do anything?” What would you do if you had a million dollars?”
