Teaching Children – The Value of Money

Teaching children about money should be high on our list of priorities. The One for the Money pamphlet produced by the church has 12 points to guide us in properly managing family finances. Three of those points address the need to involve and teach the family members about finances. Family Home Evening is a great place to teach and discuss these important topics, but even more influential is your example and day to day discussions with your children.

Your interactions about finances with your children will depend on their age, abilities and comprehension. For example, with a two year old, the ‘discussion’ might include “Money goes in the piggy bank, not your mouth.” They can really enjoy the fun of putting coins in a money bank and it is teaching them to save from a very young age. A discussion with a teenager would be drastically different. For example, talk with them about whether they paid their tithing and ask what it is they are saving their money for, both short-term and long-term goals – clothing, a date, a car, college, mission, etc.

Kids also love spending money. Allow them the opportunity to give money to the cashier when purchasing something small, particularly when it will be something for them. Older children can count out the money and be responsible for that. Not only is it fun for them, they are learning that we don’t get something for nothing.

It is important that children learn the value of money. It will give them a foundation for making wise decisions on how to spend (or save) their money. Young children often don’t understand what items are worth, so telling them that a dollar will buy a candy bar, or rent a movie will help them put it into perspective. Another way to teach the value of money is to explain how long a parent needs to work to earn the money to buy a certain item. Encourage play around money – for example, set up a play store or a pretend garage sale.

Involve your children in your grocery shopping, gift shopping, etc. They will learn very quickly about the value of money. When a child asks for something, it could be the perfect opportunity to talk about how much things cost. Don’t hesitate to let them know if it costs too much, or it isn’t worth the price. Also, encourage them to save for something they really want. Children will learn more from being told no and waiting for their wants than being indulged at the moment.