When I saw Mrs. Chan and her son Bobby today, the boy was throwing a massive tantrum and refused to get into the school bus. Mrs. Chan said Bobby was upset with her because she wouldn't buy him a smart phone. He thinks it’s just as inexpensive as a pack of gum. Thinking back, when my children were young, they too didn’t have any money concept either.
Mrs. Chan, “Bobby called me a liar. I gave him a scooter in April, then a big balloon last week, and he just doesn’t understand how such a tiny phone can be more expensive than his scooter and balloon.”
Mrs. Chin, “When my kids were Bobby’s age, they thought they could have whatever they wanted. Every time they went to the supermarket or the mall, they would make a scene and demand to take home whatever they wanted.”
Mrs. Chan, “Bobby is only 5. How do I make him understand how money works?”
Mrs. Chin, “You can teach him in your everyday life! Take him to a fast food shop, and ask l him to choose and pay for his meal with a set amount of money. He may not understand the concept behind the cost of things at first, but at least he’ll understand that food costs money.”
Mrs. Chan, “That’s right! I want Bobby to understand that money doesn’t appear out of thin air and he can’t have everything he wants. He wants a smart phone just because his cousin’s got one.”
As a mother, I understand that teaching our children takes time and patience. That’s why it’s important to start teaching them money management from an early age. It is a concept that will benefit our children for years to come.
You may keep the following 6 points in mind when introducing the concept of pricing to your children:
- Since children may not understand the cost of different things or how much a $20 dollar bill can buy, the first step in learning money management is knowing how much things
- Items that are smaller in size can sometimes cost even more than bigger items.
- Children must understand that what they want can be expensive and not always affordable.
- Don’t buy something simply because someone else has it.
- Money doesn’t come out of thin air. Mom and dad work hard in exchange for money to support the family.
- Play a game of “guess the price” with your children: before you go shopping, guess the price of each item on your shopping list together, then check their prices at the store and let your children pay with cash. Children may make the wrong guess at first, but they will gradually become familiar with the figures and have a clearer concept of money.
