Why Teach Your Kids About Money?
The importance of teaching your kids the concept of physical money and how to properly manage money cannot be overstated.A government study concluded that the population of the UK, while knowledgeable on financial terms such as APR, inflation etc. showed a dependence on borrowing to make ends meet.
So putting a focus on the advantages of saving money to your children will have far-reaching benefits for them as they go through life. Now, we understand that talking about statistics and national studies may seem a world away from what your little ones spend money on, but it isn’t. As parents, there’s a responsibility to teach our children how to prepare for the future.
A study by The University of Cambridge found that children start recognising money by the age of 3. Three to four-year-olds know what money is for within a shopping context and can explain that it is used to buy things. By four to five years, children understand that they need to pay for merchandise, but may not understand that coins have different values.
A great way to kick off their education is to bring money into playtime. For example, your child pretending to be a shopkeeper is an excellent way of embedding in them that things cost money.
As children get a little older, it’s a good idea to teach them to be able to save their own money. The MoneyBox Tree allows children to put away their £1 coins and learn the value of money, and how saving it can buy them nicer things in the future.
If a child has the ability to put off buying something small now, like ice cream because they’re saving for something a little bigger, perhaps a bike? They’ll make better decisions all together moving forward. The ability to put off something they want now is called delayed gratification, we’ve written about this and the benefits of teaching it to your children from a young age.
Money is often thought of as an adult topic that children don’t need to know about, but that approach can be damaging as we’ve seen from various studies. As we said at the beginning, The importance of teaching your kids the concept of physical money and how to properly manage money cannot be overstated.