According to research by professors at Cambridge University, children’s awareness of money is formed at age 7. How to start educating children at this age about money? How to help children become aware of money value or teach children how to spend money?
Nothing can teach children how to use money better than visual education. Specifically, let me see how you spend your money. Take your children shopping with your family. When choosing items to buy, explain to your child why you decided to buy this product. As a result, children will learn not to buy all the things they like but buy them because they are suitable for their personal or family needs. This is also the way to teach children how to use the earliest money. It is possible to start even with young children when they understand what people around say.
For older children, give them a specific amount of money each month that they are allowed to spend. This will help children learn how to use their money early and limit the need to buy more unnecessary things. Some families use money to pay for the housework they are assigned. However, experts warn this leads to the consequence that the child will only do housework when paid. Thus, encourage children to contribute to the housework and consider it an achievement worthy of praise, not to be paid.
Slowly explain to children how real money comes from. Tell them about the work you do, you get paid like this and why the bank gives you money. In this way, your child will gradually understand that the money is based on labor and effort; therefore it is not advisable to waste money.
Children who are not good at calculating tend to worry more about money than children of the same age. Conversely, children who are good at math mostly know reasonable spending, have the ability to save money or even know how to use money for social and charity activities. Therefore, you should encourage your child to calculate expenditures, develop math skills as well as financial balance.