Has your child ever begged you to buy toys and sweets in a shop? Have they ever cried, screamed and yelled when you refuse to buy it for them? As a parent, have you ever given in to their crying and whinging? From research conducted by local parents globally, children begin to want things from the moment they can point and cry. This tends to be at the tender age of 9-10 months when visiting supermarkets and other attractive stores. But the problem is that in almost every economy, there are countless of children who fail to understand the importance of money and financial management. The article is intended to give real applicable advice on how to teach children the value of money and financial matters.
4 Key Principles How to Teach Children the Value of Money, how to Save and Use Money
How a child manages and behaves with money in adolescence and adult age, depends on the training and examples seen within their own families. “Train up a child in the way he should go, and when he is old he will not depart from it” (Proverbs 22:6). Family is in fact the most important socialization institution for teaching and educating children in important life skills such as money and financial matters. It is within the family setting that a child is taught and prepared for adult life and form habits for life.
It is therefore significant that a child understands how to earn, spend and save money to survive in an ever-changing economy. Applying the four key principles will enable your child to cope with financial matters.
1. Teach children the value of money and how they work
It is essential that your children understand that money is important in our life, but not always essential. Money provides homes, food and other necessities of life. Without money, the chances are that basic needs will not be met. Therefore, teach your child that their money can be used for good causes as (Luke 10:30-37) in the story of the Good Samaritan. Equally, your child must know that money can also be used for evil deeds. Therefore they must place their money in the Kingdom of God rather than in the hands of the world (Matthew 6:19-24). Encourage your children to not set their minds only on the things of the world (money), but lay up for themselves treasures in heaven.
2. Teach your children about earning
Teach children the value of money, for that they need to first have an income. An income is regular money received for work or investment. Children can learn to earn money in many ways by asking them to do tasks around the home. For example, cleaning the shower on a weekly basis, washing the car when required, cleaning the garage or gardening etc. These should be jobs that require more effort than routine jobs such as tidying their bedroom. It is important to let your child know that their income will be based on them working hard and for well-done quality work. “For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat” (2 Thessalonians 3:10).
Parents should refrain from simply handing money over to your children as this will make them think that money comes automatically with little or no labour. Your child will then begin to separate money from work. God’s principle teaches us that earning associated with labour, whereas society and government fosters a ‘handout’ mentality. “Lazy hands make for poverty, but diligent hands bring wealth” (Proverbs 10:4).
3. Teach your children how to keep a budget. Habits for life
It is impossible for a child to learn money management unless they have money to manage which they have earned themselves. Teach child the value of money and to keep a budget will help them in their behavior of financial matters and self-control. Teach them the principle that once the money has gone, then spending is over. It is also essential that children learn not to accept things on credit, but to save for the latest fashionable trainers, phone or clothing. By doing this, you will help your child to learn to live with limited resources and to grasp good stewardship giving thought and care to their own personal income. “The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty” (Proverbs 21:5). By working within the constraints of a budget, will enable your child to discover financial freedom (1 Timothy 6:10).
4. Teach your children how to save money
You must teach your children how to save from their incomes. They need to understand the importance of giving up today’s desires for imminent benefits. Proverbs 21:20 states: “There is desirable treasure, and oil in the dwelling of the wise, but a foolish man squanders it”. Teach them to put aside a percentage of their money in savings. Discourage them in spending their money on things such as food, the latest fashion, trainers etc as these are short-term pleasures. “For the world offers only a craving for physical pleasure, a craving for everything we see, and pride in our achievements and possessions. These are not from the Father, but are from this world” (1 John 2:16).
Encourage the use of piggy-banks, home-saving accounts (you as the parent save the money on behalf of your child and add a small interest on their savings) or envelopes in which your child can use to show their budgeting, (envelopes such as; savings, clothes, spending) as these are good principles in savings.
These financial education strategies used within your family, will give you and your children the chance to connect responsible financial behavior with Bible Christian principles.And they will teach children the value of money.
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