Children usually spend money depending on what they see it do. If you go to the supermarket to purchase food and other necessities with your children, they learn that money for expenses. That is why when you offer your child money as a gift or out of excitement, the first thing they think about is a snack, a sweet or balloon.
Some parents think that giving a child money is useless because they will not spend it on anything valuable. Yes, I agree with such parents because children cannot make proper financial decisions without guidance.
Why children must learn financial management
Children develop a saving culture: one of the principles of money is saving regardless of the age or amount of money you have in your wallet. It is a good habit for children to learn saving because they develop a saving culture at a tender age. I taught my three-year-old daughter how to save money with a home bank. Every time she gets money, she picks a coin, throws it to her home bank and spends the balance.
Children learn to make financial decisions and priorities. It is so sad to see kids buy snacks only yet the other more important things they need in their lives. When offering money to a child, guide them in decision making. Children learn that money is not spent for fun, but also on important things like storybooks, colors, cameras and many others.
Children learn to practice acts of kindness: Children should learn that money is not about what they want. Rather than helping people in need and performing acts of kindness. Let children offer a part of their money and donate to other kids on the streets, orphanages and other people in need.
Let your children give offertory to holy places like a mosque, church or temple. This act does not only strengthen your child’s faith but also teaches appreciation and giving back.
I strongly recommend that you start teaching your child financial management as soon as they learn the money has value. It is a good habit to give your children money, but it’s wise to teach them the importance of money.