Polliesdividend

Teaching my kids – Part 1: Getting to know money and the value of money.

As I wrote in my previous post I will be writing some post to try to educate my kids. I know they are still very young (4 and 7) but it is never too early to start. And the can read these blog posts later on in life 😉 (This is probably the case, because they don’t speak or read English very well at this moment – You got to love an understatement!)

For young kids it is in my opinion the best way to learn about money and the value of it just by playing. Research here in The Netherlands shows that kids, who have learned about financial affairs/stuff, will be more financial stable, later on in life. And they most likely will not come into financial troubles.

So when they turned 4 years old we started with giving them allowance. Just €2 each month. We told them that they have to save at least half of it every month. They other half they, if they have a good purpose for it, can spend it. The first couple of month we made something special about their allowance and gave them their own piggy bank. What a fun it is, to put something in your piggy bank.

Every € they got from their grandparents they have put in their piggy banks. They are little savers already.

3 times a year we all go to our bank and deposit all their savings to their savings account. What a fun this is! They have to put all of their money in a machine, which will count their coins for them and then automatically deposit it to their savings account. They think it is a really cool machine and they love especially the sounds al these coins and the machine make. So when we talk about a bank they have a really nice association with it.

When they see something, for instance, in the toy store and they ask if they can buy it, we tell them how many months they have to save their allowance to be able to purchase that kind of toy. This gives them an idea about the value of things. And it works! A few weeks ago when I told the oldest how money months she had to save, she look at me and said: “ This is a expensive” and she decided not to buy it because she thought it was too expensive.

Also when we go grocery shopping, we tell them how much things cost when they ask for it. Just in the normal things of every day life, we find little opportunities to tell them about money and the value of it. And of course we tell them that we have to work for money. We have been on a road trip and visited family in the USA this summer, and we told them that we have to work hard and save a lot of money to be able to do all of this. This made for a nice little conversation were we tried to tell the kids how much it cost. We told them how many liters of milk/custard we could buy for that money. And that gave them a concept of the amount. You had to see those eyes. It was indescribable. Man, it is nice to see kids grow up and learn things. Especially when you can help them.

As parents you try to do the best thing to educate your kids. This is how we try to get them acquainted with money. And learn them about the value of money.

This is my first blog about teaching my kids. I hope my kids at the age of say 18 have all the financial knowledge I have right now. This would be a huge advantage for them! And that’s why I started these blog post series.

What do you do to financially educate your kids? I like to hear from you!

Thanks for stopping by.

Cheers,

Pollie

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9 thoughts on “Teaching my kids – Part 1: Getting to know money and the value of money.

  1. mamaadventure

    We have a similar approach, ours always save at least 10% of any money they receive. They also sell old toys/belongings to help save for new items. Additionally when shopping we have taught them to check price/weight (or item) which has really helped them see that the cheapest is not always the cheapest!

  2. roadmap2retire

    I knew I was going to love reading this series – and that was a great post. Thanks for sharing and kudos to you (and your spouse) for getting the kids educated early on.

    Keep these posts coming!
    R2R

  3. DivGuy

    That’s a good start! Mostly the way we did it too. My kids are now 10, 8 and 3 and the two oldest now get the chance to buy bigger stuff because they saved. It’s also fun to see their choices and how they learn about the value of things according to the time they last! They will have some savings for our RV trip next year too and I can’t wait to see how traveling might change – or not – their purchases.

    Keep us updated!

    Mike

  4. Miss Mazuma

    I applaud you for starting early with your kids. The knowledge you are giving them is so crucial to their future financial lives. I wish I had been taught directly instead of by default. I was taught finance by hearing my parents argue over its scarcity which made me a saver but of the hoarding variety – I never wanted to be like them. Now, as an adult, I have a better appreciation of what they were going through and why all arguments were sourced around money. The positive experiences your kids are associating with their coins is such a better start! I can’t wait to read more. 🙂

    1. Pollie

      Thanks you make me blush 😉
      I had the same wish as you, so I decided to act upon this wish. And let me tell you, it is hard sometimes. Try to explain the financial world to a kid. There are plenty of times I don’t even get it. But I’ll do my best

      Cheers,
      Pollie

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