Teaching Kids the Value of Money

This post was sponsored by COUNTRY Financial® as part of an Influencer Activation for Influence Central and all opinions expressed in my post are my own.

Earlier this summer, I shared with you all some important tips and resources for teaching your kids about money and money management. I shared things like fun money games for kids, books and easy ways to each them to save. For the most part, my kids have started in the process toward some pretty good finance management skills. One of the most important financial activities we’ve employed is giving our kids the ability to start earning their own money. It’s such an important step in helping them to understand the value of money as they learn that in order to earn money you have to work for it.

Now that they are old enough to semi-successfully complete chores around the house, we let them complete certain chores for pay (outside of the things that are expected of them such as cleaning their room).  The latest COUNTRY Financial® Security Index examined Americans’ current sentiments on the topic of teaching their children about finances through the use of chores and allowance and created an excellent tool to help empower families to teach kids the value of a dollar.

The new ChorePal App by COUNTRY Financial® helps parents manage and reward daily household chores and teach kids how to set short- and long-term goals. The ChorePal app is pretty simple to use. Families set individual chores for each child in the family, along with either point or dollar based rewards. You set the frequency and days to complete the chores and can request approvals, providing instant satisfaction for a job well done.

Once they’ve started earning money, it’s still imperative to take it a step further to make sure they truly understand the value of money and are have clue of what to expect in the real world.

Here are some great tips you can employ to teach your kids the value of money:

Pay a Different “Wage” for Various Chores

One way for kids to learn the value of money is to pay them different wages for different chores. For example, folding laundry may pay $0.25, but washing dishes may pay $0.50. Your kids will quickly learn that the harder they work, the more money they’ll make.

Play the Grocery Game

Gather some groceries from your kitchen and put price stickers on everything. Give your child play money and let her “go shopping” for groceries. Make sure that you have more items that she has money for. This will teach her to pick and choose. As she gets older you can start teaching her how to use coupons to make her money go farther.

Teach Kids to Save Up for Something

If your kids want something expensive, tell them that they can have it, but they have to save up the money to pay for it. Sit down with them and help them determine how much money they need to earn each week in order to buy the item. If you want, you can then go to the bank with your children to open a savings account.

Give to Charities

Helping your child see how money can help others is also a great way to teach kids the true value of money. It might be giving money to a food bank and letting your kids see how the money helps others or buying toys to help those less fortunate. It’s easy for kids to take for granted how lucky they are to have the things they have until they are able to truly see and experience this.

Explain the Value of a Dollar in Other Countries

Last, but not least, show your kids what a dollar would buy in third world countries. This actually more of a lesson in how not to be wasteful. I remember my first time visiting India, I was amazed at how far a dollar could go for natives. While I thought nothing of indulging in some of favorite, yet pricey treats, I was a little humbled to learn that what I spent on coffee in a week could clothe nearly an entire village. It’s a great way to teach kids that even a small amount can be a lot to others and hopefully, foster a love of global philanthropy.

******************************

Bottom line: Take the time to teach your kids the value of money. It can make a huge difference in how your kids spend and think about money.  Be sure to download the new COUNTRY Financial®ChorePal app for a proactive way to introduce topics about the value of hard work, savings and investment with their children in a simple and fun way.

Note: COUNTRY Financial® is a full-service insurance and financial services company, whose offerings range from auto, home, business and life insurance to retirement planning services, investment management and annuities. They are in the communities they do business and take a personal approach to planning for people’s financial futures.