7 ways to teach your grandchildren the value of money
Building up good everyday spending habits will have a very positive impact on your grandchildren’s financial future. There are games that you can play with your grandchildren to teach them about money, but you can also teach them when you take them with you as you complete your everyday spending needs.
Here are seven ways you can help teach them the value of money.
1. As soon as your grandchildren can count, introduce them to money.
Don’t be afraid to take an active role! Observing others and repeating what they do are two ways that children learn. At the supermarket, get them to count out the money when you go to pay.
2. Talk about how to save money and how to spend it wisely.
It’s also a good idea to help them learn the difference between what they need, what they want, and what they wish to have. This will help them make better spending decisions in the future. Then when they are making decisions about spending, ask them if it’s a need, want or a wish.
3. Help them set goals and save.
Goal setting is a fundamental concept for learning the value of money. You can do this by teaching them to work and/or save towards a goal, like a toy.
4. Give your grandchildren money is smaller denominations.
If you give your grandchildren money, give it to them in smaller denominations instead of the full amount to encourage saving. For example, if you give them $5, you can give it out in coins instead of a $5 note. This way, $1 can be put aside in savings, and the rest spent. If they get pocket money from their parents, encourage them to do the same.
5. Show them how to save money in everyday situations.
For example, take them grocery shopping with you, and show them ways that you save money – like choosing items from the shelf that have a sale sticker on them.
6. Show them the value of planned purchases.
Take them with you to other stores. Engage them in making a list of things you plan to buy and let them help you find them. Show them how to compare prices, check for value, quality, and warranty. Unplanned spending wastes 20 to 30 per cent of our money because we don’t always check the value of our purchases against similar products.
7. Let your grandchildren make spending decisions.
They will learn from their mistakes, and spending small amounts of money badly and learning from it now is better than spending larger amounts of money badly later in life when they are more financially independent. When they do make spending decisions, talk to them about the pros and cons before they make another purchase.