Until the ages of 7 or 8, children are literally being
programmed by their environment, what they see, touch, hear and
most importantly feel, shapes the ‘rules’ they create in their
subconscious minds. These rules then dictate their values,
beliefs and actions and can be difficult to reshape as they
become adults.

With financial education absent from the curriculum in most
schools, it’s increasingly important for parents to play a key
role in teaching their children about money.

When it comes to finances, think of the rules that you, yourself,
created during these impressionable years. Was it scarcity and
lack, was it jealousy and envy, or was it a confidence and
certainty?

Here are 7 ways to help you teach your child about money:

1. Set an example

Think about the example you are setting your children. Do you
change the subject when they walk in the room? Do you argue and
fight over money or display stress over late bills? Children are
more influenced by what you do than what you say.

Try and cultivate a more open approach to discussing money. If
planning a trip or holiday, for example, why not share the costs
of different options and involve the kids in the decision
process?

2. Reward them for saving

In the ‘real world,’ we are rewarded for saving or investing
either by interest, dividends, rent, etc. Encourage your child to
save by topping up their savings with interest of your own.

Adding a simple interest or by giving 1 coin when they have
saved 9 is an easy way to begin.

3. Encourage routines

Think of habits such as brushing your teeth or buckling up in
the car. It becomes so automatic that we don’t have to think
about it. Yet as a child it was sometimes an effort or something
that we needed to be encouraged to do.

What if every time your child received some money they divided it
into 3 and allocated to spend, share and save. The chances are
that if repeated often enough this habit may also become
automatic.

4. Use real money as play money

If your child wants some coins to play with, do you worry that
they will lose them or that coins are dirty and full of germs?
What are the subconscious messages here? How are children ever
going to be happy and comfortable with cash if they think it’s
either dirty or so scarce that they fear ever spending it?

5. Demonstrate paying bills

This can be a great way of explaining the consequences in a cash
free society. When the credit card bills come in, sit down with
your child and look at each of the items. Then you can explain
what each purchase relates to. Then when you write a cheque,
it’s another chance to explain the system and that money is
not just notes and coins.

6. A field trip

A trip to the bank, post office or supermarket can be a rich
learning experience. Explain what you are doing and why. Focus
on where the money goes and how it circulates in the economy.

Encourage numeracy skills by asking your child to hand over the
money and calculate the change.

7. A Gratitude List

One of the best ways to manifest more of something is to be
grateful for what you already have. Encourage your kids to make
a list of the things they are most grateful for. Perhaps tie
this in with the spend share save activity and donate some money
to something important to the child.

If they have lots of toys why not give some to a hospital or
charity shop?

In conclusion, remember that money is an idea as much as
anything. So create an atmosphere where it’s ok to discuss
money and for them to explore and learn.

About the author:

Author:  DJ Britton

DJ Britton is an author, inspirational speaker and financial education specialist. For more great ideas for teaching kids about money take advantage of our free video training series at http://www.thefinancialfairytales.com/video

Teaching Kids About Money is designed to help you teach your kids how to earn, save and give. These stories and tips will give you useful tools to help teach your kids the value of money.

Teaching Kids About Money shows you how to:

“I just wanted to thank you so very much for your helpful articles. The one that I just read about teaching kids about money was a mind blower!! I have practiced many of the things you suggested for years and was criticized. It is refreshing to know that what I am doing is the right thing to others besides me. My family is in the “crisis mode” at this time and every little bit feels like a fortune. Thank you for your insight!!!” -Shaunna M.

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