My mom loves retelling a story about my little brother wanting a particular toy. The little guy asked my mom for some money so that he could buy the toy, but my mom replied nonchalantly, “I don't have money for that.” She did, but she had reason to give that response. You see, as young as he was, my brother (as with all three of us siblings) had an allowance of HK$10 weekly. His asking for cash on this particular occasion meant he had no more money, probably from buying a toy a few weeks before.
My brother creased his little brows and then appeared to have a light bulb moment. “Then just go to the wall and get some money!” referring the ATM, which probably to a child was accessible from any wall. He got another “no” from my mom!
Suffice it to say, my brother did end up saving his allowance for a few more weeks and finally bought his heart's desire, which was probably another G.I. Joe action figure.
Kids and money. It's a tricky topic for many parents, probably because we ourselves are baffled by money itself. Currency, savings, budget, debt, investments, interest - these are all big words for kids, and most parents themselves struggle with these aspects of financial life. Still, money wisdom needs to be taught, and there are ways to teach your child about money in an age-appropriate way that he or she will understand.
Here are five important lessons you can impart to your young kids about money, along with tips on how to teach each lesson in a simple way.
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1.Money is something we use every day.
Our children observe us using money all the time. When they reach preschool or Kindergarten, certain money concepts could already be introduced, such as:
Teach your child some basic money and currency facts. For starters, teach them the difference between centavos (5, 10 and 25 centavo coins) and pesos (1, 5 and 10 peso coins). Then teach them about the value of different monetary units.
Impart early Math skills and age-appropriate Math equations that will help them understand how money is used in everyday life. For example: Take them to the supermarket and ask them to find an item that's worth Php10.00. Help them add up the coins they need to pay for that item and help them realize that money can pay for things they need, like food.