At some point in your childhood, you may remember being told by a parent, perhaps sternly, how hard they worked to provide for you. The aim was to help convey to you as a child, the worth of possessions or money. Experts agree that one of the first things that children need to be taught is that money isn’t an abstract object, but has value.
Over the last year we’ve spoken to and heard from parents all over the world about their children’s financial education. Over and over, we get told that teaching kids the value of money is one of their biggest concerns. So we’ve pulled together a few ideas and exercises that can help your kids get a sense of what money’s worth.
Take your kids to work
At the age of six children might know what money is, but not quite what it is worth. Beth Kobliner, a personal finance author, believes that the best way to help children make the link between working and earning money is to show them.
Kids need to know that money comes from having a job and working hard. Taking them to your place of work helps them to make that connection, if your employer runs a “Bring your kids to work day”, even better. It will give them some context when you explain to them where their food and toys come from.
Pocket Money as a salary
If you are one of the parents that doesn’t want to tie individual chores to pocket money you could try treating your kids’ pocket money like a salary. They get paid each month for helping out around the house, just like their parents do in their jobs.
Read them a story
The “Max and Ruby” books written by Rosemary Wells, are not only good bedtime stories for younger children, but they also sneak in some of the key concepts of financial literacy such as saving and giving. The books also include activities and games that are linked to the books.
Play a game
One of the Max and Ruby games involves using pretend money to get children to trade money for items that they might want. In the book the characters need four dollars to buy bluebird earrings. The simple lesson is that when someone has something you want and you have something they want, you can trade. Watch Pigzbe CEO, Filippo Yacob, share experiences from his childhood at TedX about he learnt to value money.
Teaching kids the value of money: how Pigzbe helps
Teaching kids the value of money is a fundamental part of a child’s financial literacy. That’s why Pigzbe lets parents set tasks to complete for a specific amount of money, along with one-off gifts and recurring allowances. This way children learn to conceptualise different forms of income, while also building up a sense that some tasks are worth more than others, an allowance might rise or dip depending on good behaviour, and that big achievements can be worthy of a financial reward.
And if you want more practical tips and tricks for managing pocket money at home, with or without Pigzbe, download our Pocket Money Guide for Parents.