Teach dollars and sense

THESE days with technology such as PayPass and wearable payment devices, it’s even more important to teach our children the value of money.

A 2017 article published in the Journal of Family and Economic Issues says, “Millennials are struggling to meet current financial challenges”. The author called for a closer look at the primary source for financial education – parents.

So what’s the best way to teach kids about something new? Show them.

Show and tell

Letting your kids see the various coins and notes and talking about what each one could buy will help to reinforce their value.

For example, a $2 coin may buy their favourite bakery treat, or a $20 note might pay for Friday night takeaway.

The MoneySmart website suggests parents follow the money chain with their kids, starting at the ATM.

Explain how the money gets into the bank and calculate how much will be left after you’ve made your withdrawal.

Head to the shops with your money and talk about all the things you’ll buy with it.

Point out the different prices for similar items and identify which deals are better value.

Pay the price Remember the good old days of earning pocket money each week?

Continue that tradition with your children and negotiate different prices for various chores.

When dispensing pocket money, talk about how much they’ll spend and what will go into savings. Discuss the difference between needs and wants, and identify the steps to achieving their financial goals.

These basics will help to set up your children to become responsible financial citizens.

kidspot.com.au