Learn how to handle money
A new computer game here, a chic hair clip there. The latest issue of your favorite magazine has also just come out and actually it would be great if you could also get this one cool toy car. At a time when everything can be bought on every corner, the temptation is great to spend more money than you actually have available. Children are no different than us adults. But they are often not yet able to correctly assess the price of a product and its value. Dealing with money needs to be learned and imparting this knowledge to our children is a very important task.
Children learn from their parents
As so often in life, when it comes to money, we parents have a great role model function. Long before children can tell the individual coins and bills apart and assess their value, they are already aware of how their parents handle them. The financial situation is different in every household. In some families, both parents work full-time and earn well. In others, however, every penny has to be turned over three times and there is barely enough money to live on. Be that as it may – regardless of the parents’ income, children learn from the behavior of their caregivers. Do we naturally buy things that come our way? Or are we already thinking very carefully about what we need and what we can do without? Do we go shopping indiscriminately or do we take advantage of special offers, to relieve the household budget? Does the offspring get every wish fulfilled immediately or do parents sometimes say “no” in this regard? Our own consumer behavior makes a significant contribution to how our children later deal with money.
Also Read: Should I Fulfill My Child’s Every Wish?
Swimming for families
Pocket money – important tool for dealing with finances
Most children sooner or later get pocket money . And that’s a good thing, because they only learn to live with this means of payment if they have a certain amount at their disposal every week or month. The amount of pocket money depends on the age of the child and, of course, on the income of the parents. A first point of reference in this regard can be the youth welfare office , which provides information on this matter.
If the offspring now gets their pocket money, they can think about what they want to do with it. Immediately run to the nearest supermarket and get sweets buy for it? Or would you rather save and maybe fulfill a bigger wish over time? If children have money in their own hands, they start thinking about and comparing prices. Should I really buy the comic in the store? Or would you rather go to a second-hand shop where it only costs half as much? But I could also get something to read from the library, it doesn’t cost me anything… Of course, parents can advise their kids on how to use their pocket money and give them tips. But children also need to experience how quickly money slips through their fingers when it is spent indiscriminately. They have to learn to allocate and manage their money. That is why pocket money advances are just as taboo as forgotten payments by parents. Because how else are children supposed to learn
Where does the money come from?
For many children it is completely incomprehensible how their parents actually get money. You see mom or dad drive up to the ATM and a little later leave the bank with a wad of bills. But where does this money actually come from? Very few children have the opportunity to experience their parents at their workplace and thus to understand the connection between professional activity and financial reward. But there are ways to make this structure understandable to your own offspring. Here is an example: the child wants a car race track and the parents want it to earn the money for it itself. Well, with pocket money alone, it will take a long time to save up the amount needed. An additional income is needed. The child could now walk the neighbor’s dog and get a small hourly wage for it. Or give Dad’s car a really thorough cleaning. Paper can also be collected and then taken to a collection point. There are only a few cents per kilogram for this – and it’s still worth the effort, because the offspring sees: I have to work hard to get money! With all this, however, it is important not to pay the child for everyday things that are actually taken for granted in every household.
Dealing with money is not easy to learn and it can take a long time to really internalize it. There will certainly be one or two stumbling blocks along the way, and many parents are wondering whether their offspring will ever learn to manage their money properly. But with your upbringing, you also lay the foundation for dealing with money. You can trust that your “educational work” will bear fruit.
But what should you do when the grandparents give the grandchildren money ?