Helping your children learn the value of money with household budgeting

Many children believe there are “endless supplies of money” that simply come out of an automatic cash machine. After all they see us go to the machine, punch in a few numbers and magically the money comes out.

Unless we share how money is earned and managed with our children, they won’t understand how it works in your home now and they won’t be learning the important skills around money for when they leave home and need to take care of themselves.

Do your children understand the value of money? Of course parents like to buy their children the toys, books and other things they need and want but when money is tight for the family, this is not always possible. Do your children understand your family’s current financial circumstances?

Parents instinctively want to ‘protect’ their children from money issues, so many times they do now let children know how tight money really is. However, it is actually more supportive for children for parents to be open about with their children about financial issues as it helps them to understand why there might be tension in the household about money and why parents/carers may need to say “no” to some of the children’s requests. Children can then understand that they can’t have the toy or game they may want because the family is short of money rather than because they are not deserving of the gift.

Let’s face it … money problems can cause tension and fights and if children aren’t aware of why the fights are occurring, they may misinterpret what is going on, blame themselves and that can be very scary for them. So why not get everyone involved in the family budget and that way everyone in the family will have the same understanding whatever your circumstances. Helping children learn about how money will give your children skills for money management for life. By doing this you:

1. help children understand how money is earned and spent in their household

2. helps children learn the value of money and gain lifelong skills around responsible spending.

If you want to know more about how you can help your child develop their understanding and skills for managing and saving money, you’ll find the Inspired Children Education, Careers and Money Life Skills Home Activity eBook helpful. The ebook has activities that can be completed in just 15 minutes at a time and your kids will learn about:

  • saving money, so they can save for the things they want
  • household spending so they understand how money is earned and spent
  • understanding the concept of ‘value-for-money’, so they know how to get a bargain!

There are nine other 15 minute life skill activities around education and careers you can complete with your child which help them develop:

A love of learning; planning and completing homework; a positive attitude towards making mistakes; active learning versus passive learning; understanding why learning is important; understanding the many different roles in life; exploring possible future life directions; investigating the health and medical professions; and benefits of active listening for learning.

Remember each activity only takes around 15 minutes to complete and you can complete them at your own pace at a time that suits you and your family’s lifestyle... Most importantly, imagine how good you’ll feel about the huge difference you’re making as a parent to your child’s education, career and their financial literacy, preparing them for life! To find out more