When children understand that things cost money, and that money has to be earned through hard work, they will be less likely to constantly ask you to buy them things. To teach children to value what they have and what things cost, parents shouldn't always say "yes" and give in to their requests. Children may also become spoiled when things come too easily.

Our everyday life is the best classroom to learn about money and finances. With the following five tips in mind, parents can nurture good money values in their children which will serve them well in life.

1. Distinguish the value

Young children may not have any idea how much things cost. They may think that big items cost more than small ones. So, the first step to learn about money is to know the prices of various items and how money can be exchanged for these items.

2. "Needs" and "wants"

Your children may ask for something just because their friends have it, or they may think that a new toy is more essential than groceries Learning to differentiate will help them make better life decisions when they grow up.

3. Affordability

Let children know that your budget may not be able to afford the item that they would like to buy. Explore with your children if there is a more affordable option, or discuss what you would need trade-off if you were to buy that item.

4. Delayed gratification

Children usually want things "right now". Let them know that things cost money and teach them how to save up. Ask them how much the item costs, discuss how they can set aside part of their pocket money to pay for the item. Ask if they still need it a few weeks later. Children are less likely to spend money that they have to work really hard for.

5. Make it fun and interactive

Parents can go grocery shopping and ask their children to guess and compare the prices of various items. Give your children the money to count and pay for the items.

14 September 2017