Teach Your Children the Value of a Dollar

The word every child hates to hear: responsibility. As soon as they hear the word, it seems they quickly run in the other direction. However, how many times have you said to yourself now that you are an adult, “I wish I knew then what I know now”? Keep your children from falling into this category by teaching them now what they’ll need to know later.

Teach Them While They Are Young

Children learn by what they see and what they are told. When we visit an ATM to retrieve spending money for the week, all they see is a machine that gives Mommy and Daddy money every time they visit it. They do not realize all that is involved behind the scenes: that Mommy and Daddy had to work for that money, so their job placed the money they earned into their account so that they could withdraw the money from the machine each week. So, it is no wonder our children think money grows on trees (or, in this case, grows within a machine). As a result, it is important to explain to your children exactly all the steps that take place in order for the money to appear. This way they start understanding the value of a dollar and how much hard work it took to earn those dollars.

Children also need to see what hard work is themselves. Chores are a great way to get this point across. And age is not an issue, especially since you can cater each chore to the age of the child. While the younger kids can earn money by making their bed, picking up their toys, setting the table, loading the dishwasher, etc., older children can take on more responsibility, such as mowing the lawn, dusting the furniture, cooking a meal, etc. This allows children to see that in order for money to be received, work must be done.

Once they start earning their own money, you can start teaching them how to save for things they want. Is there a new game coming out, or a new shirt they want to buy? Show them how to save for their “wants.” This way they learn that their wants cannot always be met when they want them. Sometimes, you have to be patient until you have the amount of money you need—or you have to put in some “overtime”—or, in this case, extra chores.

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