Let us see how we can introduce the concept of money and teach children to value it and save it. According to the age of the child, the concept of money can be slowly introduced. It can begin with how money looks like, teaching to differentiate between the notes and coins etc. If the child can count, teach him to count money.
It is also essential to tell the child where money comes from. They need to understand that mummy and daddy go for a job to earn money. To understand this better, the parent can give a small job to the child according to the his age and give him a little money accordingly. The job can be putting away his toys in the toy box or folding his clothes or even keeping things in its place. When the child does his job, the parent can give him money saying that he has earned it. Learning from parents’ example and his own example of earning money, the child will know that money comes from hard work.
The value of money can be taught by simply taking the child to the grocery store. Teach him that everything in the store has a price and that we need to pay money to take that item home. Thus, he will learn how money is used.
As the child grows older, he should be taught about how to differentiate his wants from his needs and how the money in hand has to be spent by prioritizing his needs. For example, instead of buying everything that the child asks for, the parent can ask the child to save the little money he has earned in his piggybank and buy whatever toy he wants on his birthday. When the child decides to spend his own money, do not stop him. That will discourage him from saving altogether. As he grows, he will learn from his own mistakes and make better choices. When the saving becomes a habit during childhood, it stays for the rest of his life.
Always remember that kids imitate their parents. Therefore, it is very essential that parents set a good precedent for children to follow in terms of earning, valuing, growing, saving, and spending money.