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10 Ways to Teach Children the Value of Money

By Edited Nov 27, 2015 2 21
Children Counting Money
Credit: AOL.

Money is an important part of today’s world, so it is just as important that children learn the value of money, the earlier the better. Everyone learns from experiences in their own way and having money knowledge earlier in life could give someone a head start with their future.

Some people in life are given everything they want or need without question; others have to work very hard to get what they want. I believe that you are more appreciative of something if you have had to earn it yourself. The following ideas are to help teach children the value of money and are things I have personally used with my own children but not in any particular order.

1.   Chores – Working is something we all have to do in life at some point or another. Giving children chores is teaching them the ropes sooner than later. If they are used to having to help out or earn their money from a younger age, it won’t be such a fight or shock later down the track.

2.  Pocket Money – Work out a set amount for each job or set time such as week. This will teach them they need to save to reach their goal.

3.  Chores Chart – This not only works for getting chores done, learning the value of money and saving, but also helps with behaviour. They try hard to get rewards such as an adult does a promotion or pay rise. Try using a star chart, with each child’s job written down for each day. It doesn’t have to be lots of chores, even just one is fine. It is not the amount of chores but the point they are working for their money. Each star is worth 50 cents. They will watch their stars grow over time and even compete with themselves and each other to earn more stars for more money.

4.  Dolomite or Children’s Bank Book Savings Accounts - Let the kids be involved with the banking. They enjoy the trips to the bank, having their little bank books and counting up the slips. They watch the money grow over time, and if you are saving for something you can also let them take it back out. Watching the money go up and down is a good point to make.

5.   Make them  pay for some things – If the Children want to go to the movies, or a fun centre for example, make them pay for the entry fee out of their pocket money. This helps show them how expensive things can be but also if you work hard you can reward yourself.

6.   Let them count their money boxes – This will teach them coin value which is one of the first steps in learning the value of money. It also encourages them to save as they like watching their money box fill up and being able to count it.

7.   Plan something big – A fun family day or even a shopping day. Get them to help in the decision of where to go, or choose a toy they want to buy at shopping. Every time they add to their money boxes they are trying to achieve their goal of a certain amount so they can go there or buy that certain thing. When the time comes, they will feel great knowing they can finally buy what they want and will be keen to start over. It feels good reaching your goal knowing you deserve it.

8.   Deny them of something – Not as a punishment but to show them that you need money for certain things, to go certain places and you can’t always have what you want. Spoilt children rarely have knowledge of money value as they are given everything they want when they want it. If they want something they will need to earn it.

9.   Deduct money – When they are naughty or have broken the rules deduct money from their money boxes. Make it a set rule so they are aware breaking the rules will cost them 50cents or a dollar, and so you are not just springing it on them. They will be disappointed to lose the money especially if they then can’t afford what they have been saving for. This teaches them not only to behave but every cent counts.

10.   Show them the Electricity Bill – Show them the electricity bill and take them with you when you go to pay it. Show them how much money it costs to pay the bill. Children often think Mum and Dad’s wallet has never ending money. So show them it gets empty to and explain that’s why as parents you have to work. Make it a house rule that if you leave the lights on when not needed it will cost you 50cents towards the bill, have a set jar for it. Remember they have seen how much money the bill cost. This will encourage them to turn off the lights, but also they are imagining at the moment, all their 50 cent pieces going into this jar, so they are thinking about ways to save it.

These are not the traditional ways to teach children the value of money, but these are some of the ideas I have used with my own children and it works. These ideas have helped my children get a better understanding of money, saving, goals and have even helped with their behaviour.



Mar 27, 2012 9:28pm
These are all great tips! I remember taking my kids shopping using their own money, and I couldn't believe how frugal they became.
Mar 27, 2012 9:34pm
Yep! Once it is their own money, they seem to care. We let our kids spend $5 they had earnt from helping in the yard, daughter bought a doll and a chocolate, son's spent theirs on chocolate. My son commented, "Next time i am buying a doll and that chocolate, because she got all that and then she still has money left over for next time. Lol! These steps have have helped our children understand money and appreciate it alot more, so hopefully it helps someone else to. I am glad you enjoyed reading it. :)
Apr 23, 2012 12:25am
Really nice article! These are tips that parents should incorporate in their children's early years.I believe they would know the importance and value of money. In addition our society most likely would not be in such a terrible economic condition, and even I would have more money today.
Apr 23, 2012 4:46am
I have to agree. We didn't ever really have to spend our own money as children, and it wasn't until later in life that i learnt the hard way. If i had of known what i know now, then I also would have alot more money.
Apr 23, 2012 8:05am
I love number 9. deducting money when they've been bad. Fortunately my parents didn't adhere to that rule or I would have a mortgage-sized debt by the time I was 12.
Apr 23, 2012 3:17pm
Lol! I told my son's just last night if they kept being naughty i was going to take a dollar from them. They didn't like it much because we are going on a family holiday next week. They have been saving for awhile now. I find one of the biggest things they care about is money, especially when it is their own.
Apr 30, 2012 1:57pm
Great article!
I agree with almost everything except with deducting money because it's contradictive.
The money the child has earned is for the chores, pocket money, rewards are from the past. Taking that away from them is like when your boss reverses an amount from your already received direct deposit biweekly check for showing up late for work.
Instead I believe it is wiser to choose a punishment that relates to the time and place where the bad behavior happened.
For example: No extra shopping after bad behavior in a grocery store. Or a destroyed sister's doll needs to be replaced by using their saved pocket money.

May 2, 2012 4:05am
I do understand what you are saying, but sometimes deducting money if it is suited to the punishment can be suited. There are certain cases where I wouldn't use it but other times I would. It really would depend on each situation and child but for mine this was a very successful method, especially since we are currently on holidays that they have been saving for. But like I said, it differs to each person and situations.
May 2, 2012 4:05am
This comment has been deleted.
Apr 30, 2012 6:30pm
I love the article! I agree with the idea of deducting money. I think it works and it really hits home with the child. It might not seem fair to some, but hey life isn't fair!
May 2, 2012 4:15am
I have to agree with you, and this is one of the reasons it worked so well for my children, as you said "it really hits home". My children love money and knowing it could possibly be taken away from them doesn't sit very well. They count each cent and try very hard to add rather than subtract from their money boxes to get what they have been saving for. They know that even if they are only a dollar short then they can't afford what they want. So strive to save every cent they can. It is a tough lesson to learn and like you said some may think it is unfair, but life isn't fair so I would rather they learn that now to better themselves with it later on in life.
Apr 30, 2012 7:13pm
I'd like to add that we should also teach our children the act of charity. After all money helps but it isnt everything.
May 2, 2012 4:17am
This is very well said and true. I agree money isn't everything but unfortunately controls a lot of things, but if people were more generous then a lot of people could be in a better place. As they say, sharing us caring.
May 3, 2012 6:38am
Great article. I really enjoyed reading it. Very interesting information and ideas, really nice article. Keep up the good work!
May 7, 2012 7:02pm
Thanks, I have learnt this through trial and error, but it paid off and my children are now money smart. :)
May 4, 2012 7:04pm
Great tips and such an important lesson for children to learn. Keep up the great work.
May 7, 2012 7:03pm
I agree, alot of people would benefit if they were taught this earlier in life.
May 5, 2012 4:45pm
These are especially important for wealthy families who can afford to get their children anything.
May 7, 2012 7:06pm
Yes i totally agree. There are to many people out there that can have what they want when they want, without any consequenses or thoughts. So many people have too much money they don't know what to do with it all. You see the stories about the fallen rich people who then don't know what to do with themselves, if they are taught about money whilst given it then they would be ok when they don't have any as well.
Jun 6, 2012 5:19pm
A lot of excellent advice in this article and comments. Your articles are a pleasure to read!
Jun 6, 2012 8:31pm
Thank you! Im glad you enjoyed it and glad to hear that you enjoy my others as well. Thank you for stopping by.
Dec 6, 2012 7:05am
Great ideas, thats the only way kids will learn the value of money is by earning through little chores and saving and paying for things themselves. It teaches them so much. Great article
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