When should you expose your children to money?
As soon as they learn how to count!
Counting does not mean anything to them other than something they need to memorise. But if children can see the why’s behind learning numbers, they will pick it up quicker. If you want your children to grow up and be good stewards of money, they need to have experience handling it.
For those of you pondering on how you can introduce money to your children, here is an age-by-age guide for you.
Ages 2 to 4
After learning their one, two and threes, give your child a reason to count!
No more counting apples and oranges on flashcards, you can give them something more ‘adult’ to count – like coins.
Start by introducing them to coins. Dig out the one, five, ten, twenty and fifty sen coins and just let them feel, observe and allow them to tell you what they see. This is part of coin recognition.
Once introduced to the coins, ask them questions like:
Which has a bigger number?
Which has the highest value?
Which has the lowest value?
Can you group similar coins together?
It is likely that they do not understand the value of money yet, but they would know which is a bigger number than the other. They may not know anything beyond ten or twenty, but fifty is not a far cry from where the level they are currently at.
To make coin recognition activity fun, get your child to place a piece of paper on top of coins and “emboss” them by colouring over the coins. Talk to your child about the coin, what is on the coin and its value.
Ages 5 to 6
At this age, they are ready to be exposed to basic commerce. They will know that money is needed to get items in return after observing parents shopping for groceries. To deepen their knowledge on how money is used, introduce it to them through play.
At home, introduce an imaginary shop where they can exchange play money (or real money if you have enough change) to “purchase” items. You can use the toys, fruits, pillows or even cereal boxes as part of the items that are on sale. Use stickers to label the price of each item before giving your child(ren) play money.
Take turns to be the cashier and remember to allow them time to count, do simple mathematics and return change when applicable.
Later on, when children are finally allowed to go shopping with mommy and daddy, let them pay for small priced items or collect change for an item bought.
Then, ask them questions like:
How much does the item cost?
How much did you pay the cashier?
How much change did the cashier give to you?
You don’t need a financial academy for your child – at this age, they should just be healthily exposed to it.
Ages 7 to 9
Most parents will start giving their children pocket money or an allowance once they start attending primary school. During recess time, they are on their own, having to make decisions on what food to buy with the money they’ve got. If you have not taught them about savings, now is the perfect time to teach them about savings.
Remind them to keep the change that remains after their school day in a coin box. You could go a step further by getting them to fill in a ledger – a very simple one where they note down how much they received, how much they spent and how much is saved.
Once they reach a threshold amount of, say, RM100, celebrate by making a to the bank.
Help your child open a bank account that is separate from your special savings for him or her – this particular account will be their pride and joy, work stemming from their saving habit.
Ages 10 to 12
Most parents leave their children to their own devices once they know how to spend and save their money. But one essential lesson that needs to be taught that is, unfortunately, not imparted in schools is household budgeting.
You might be thinking, “They are still so young, why should they be bothered with household budgeting?” – but you must remember, at this age, they are considered tweens, and they probably have items they want to buy with their pocket money. One way to give them perspective is to involve them in household budgeting.
One way to do so is by introducing an envelope system, where an amount of money is put in an envelope and entrusted to your child. Then they are supposed to budget the money wisely for mealtimes. That means they cannot overspend what was budgeted for family mealtimes.
Alternatively, you can draw up a simple budgeting worksheet, huddle together as a family and plot the needed and expected expenditure for the next fortnight. Your child can fill the worksheet and even contribute ideas or possible expenses needed for the week. It can also be a good time for them to tell you education expenses that should be in the budget – like activity books, mathematical or art tools, for example.
Modelling good financial habits
Aside from teaching your children about money, it is also crucial to model it. If money is a hush-hush matter in the home where it is a topic only for adult ears, children will naturally grow up with a false perspective and relationship with money. Without exposure to what a budget is, then they might just think that all money is meant to be spent without contemplating if the purchase is wise or not. Maybe they might be too afraid to spend money on anything at all, and that is unhealthy too!
Therefore mommies and daddies, how do you approach money? Answer that truthfully, and you will guide your children to be better money managers in the future.
For more interesting stories and fun recipes, stay tuned to Motherhood Story!