Money is what makes the world go around. Teaching children the value of the dollar is an important part of parenting that will influence their financial decisions for life.
It is difficult for young children to differentiate from wanting and needing. “I need a new pair of shoes because my friend got a new pair” is not the same as “I need a new pair of shoes because mine are too small”. Teaching children the difference between a want and a need is a necessary part of teaching them the value of the dollar. It’s never too early to start incorporating this valuable lesson into everyday life, and it’s a lesson that will last a lifetime.
Children often think that because you have a credit card or a check, you have money to spend. As parents, you know that is not always the case. Explain to your child that money is often allocated somewhere, whether it is your mortgage, groceries, your electric bill or even your family vacation.
The easiest way to teach children about money is by letting them handle it. From spare change to birthday money, teach them when to save and when it’s okay to spend.
Children usually start showing an interest in money as young as three. Saving money is a big part of learning the value of the dollar.
An easy way to teach your child how to save money is with a Big Belly Bank. This unique coin bank allows your child to “feed” it coins and the clear “stomach” lets him see his money accumulate. Once full, this wooden bank can be emptied, unlike a traditional ceramic bank which has to be broken to get to the coins inside. These super cool banks can be personalized with your child’s name to make it extra special.