Teaching the value of money
To an infant, a quarter is a shiny, hard object investigated by putting it to her mouth. By the time the infant reaches three or four years old, she will realize the coin can obtain things. The child may not distinguish between a quarter and a dime, but a connection with value is being established.
The attitudes toward money developed at an early age will play a role in how a child views money and finances as an adult. The five-year old who helps wash the car for fifty cents may someday become a 26-year-old entrepreneur.
A connection should be developed between work and pay, and between pay and goods. Games can help this process. Playing “store” or “car wash” will demonstrate simple economics. If chores are rewarded, it demonstrates wages. Then the time will come to discuss the pros and cons of spending money on candy (instant gratification), on a book (lasting value) or possibly saving itadding to the next “payday” in planning for a future purchase (delayed gratification).
If you bring your financial thinking to a simple level, common sense will guide you through the teaching process. Do a little legwork and discover the many books, activities and Web sites designed to help guide you. Keep it simple, have fun, and your child will grow to respect the true value of a dollar.
If you'd like to start teaching your children the basics of money, try LGFCU's kids Web site—a place for children to learn about finances through play.
