Teaching your children the value of money and how to make it grow starts early in life. Even when they are too young to fully understand when we say no we don't have enough money to buy that, say it to them anyway.

In time, as their money perception grows and their desire for something that cost more than parents can afford gets the better of them, they will gradually understand the importance of money. Perhaps a doting grandparent every now and then gives the child a little moneyand talking about what this will buy will let him experience the value of money.

A few years later he will want to know how to get more. This will be the time to introduce them to ways of multiplying their money holdings. And it will also help if you keep talking about why you are buying this and that. Let them know that the family is saving money for some big expenditure that will affect the whole family.

Let them in on the decision making. Ask them what they think: Which is better, staying home this summer and installing an in-ground pool or going on an expensive vacation. Let them voice their opinions. Explain another reason it would be better, money wise, to stay home; the price of gasoline is simply too high to do much traveling.

Give your child every chance to accept responsibility for his actions and this is most important where money management is concerned. It must be their decision if they want something or other enough to invest their time and they money to make it happen. This solid foundation you are helping them build and showing them ways to make their money work for them is part of the structure. It teaches them the value of good judgment.

There will be failures and disappointments but see this as a valuable lesson for them. Teach them how not to compare themselves with others, although good healthy competition is good. But where it comes to money and money building skills, teach your children to compete with their past performance and not with their wealthier friends.

No one is denying the importance of money, but acquiring it should be kept in proper perspective. It should be seen as a means of an end, not an end in itself. At an early age start them on an allowance and guide them on how to use it and how to invest it in small business ventures; you, however, must resist the urge to take over control of it.

Likewise, make sure they understand the value of their time. Even at a very early age a youngster can earn money for himself. Beyond the normal amount of chores that is expected of your children, have other paying jobs available that will allow them to add to their stash.

Make sure these are legitimate and are jobs that need to be done and are not just thought up out of pity for your child's needs. (If the neighbor's child does a better job of raking leaves than your, then hire the neighbor. Your child will then learn how to be fair and how not to expect favoritism at home, or at the workplace.

Show them how to use their money for the right causes. Let them know it is expected of them to help with the upkeep of their church, to help feed the hungry, to be charitable. It is best to do this by example.

The purpose here is to develop responsibility while at the same time showing them we are here to help each other. We do this with our time and with our money. This will also keep them in touch with all kinds of other possibilities for adding to their income. They will see for themselves that when we give we get. They learn this from observing, not from lectures or sermons.

Learn more about this author, EMSalem.
Click here to send author comments or questions.

---

Add your voice

Know something about Ways to teach kids about growing money?
We want to hear your view. Write now!