Teaching children the value of money

People work hard to earn money and improve their standard of living.
Money is an important part of our lives, an indispensable means to realize our wishes and wills. Children also have to learn the concept of money from early ages. Psychologist Cangül Özer has some tips for readers on how parents can handle money with young children.

It does not take too long for children to become curious. They develop a sense of being male and female at the age of three and start to explore their environment. No matter how spoiled they are, kids have sharp eyes at observing their parents and learn new things about adult life. This is how they get acquainted with money. A rapidly growing child understands concepts like spending and saving. They accompany their parents in shopping malls and see how they use money. Parents are recommended to teach children the value of money from early ages. It is therefore necessary to create opportunities for kids. The best way is perhaps to give regular pocket money starting from the preschool period and guide them to gain responsibility for their own finances.
Children can learn how to arrange their finances and balance their expenses. There is a huge difference between buying something upon your child's request and giving them some money to buy it on their own. In other words, parents manage the money if they buy something on behalf of their children.
From this perspective, pocket money does not appear as additional income, but a learning material. Kids can comprehend that money is not something easy to spend.

Tip: The amount of pocket money should be arranged in accordance with the child's age, requirements and the family's economic status.

During the preschool period, children begin to learn numbers and measurement.
However, children's development may vary.
This is because parents should pay attention to the child's interest and level of knowledge about money. Experts recommend parents give small amounts at first. Children can buy a book, a toy or some clothes with that money.
If they are offered more than they need, they could become a greedy person. The amount of pocket money can be increased in line with the child's age. If there is more than one child in a family, parents are recommended to dole out a fair share.

Although children observe their parents, they do not know where to use money. A parent's guidance is therefore rather important.
Parents should talk with children in a proper way. They can say pocket money is used to buy some food, toy or a piece of clothes. It is also better to remind them that money should be saved at times. As mentioned, weekly pocket money is a learning material to teach a child how to take the responsibility for their own money.

Psychologist Cangül Özer says,
"Pocket money should not be seen as a present or punishment. There are more important things than money. Teaching the value of money is a kind of future investment for your child. Parents may say that people can be happy even if they do not have much money. Show them your happiness when your child gives you his own drawing or a small present. They will then learn the things that they [put effort into] are more valuable than money. It is also wrong to punish
your child by cutting his pocket money.