The day you realize your child or children have no concept of the value of money can be both jarring and eye opening. We all want to raise confident, empowered, educated, well prepared kids. But often times, our desire to give our kids the absolute best can lead to entitlement issues.
In reality, the best gift we can give our kids is an education in life. One of the most important life skills for any kid to learn is the value of money. It’s not always an easy concept, especially for young kids or kids who’ve already established a pattern of being given everything they ask for. But, it’s also never too late to start and reverse old patterns that didn’t serve your family well.
You might be wondering if it’s time to start talking to your kids about the value of money. If you’re wondering about it, I’m guessing you’re already beginning to see the signs below and that’s why it’s begun to weigh on you.
Here are 4 signs your kids need to learn the value of money
They say “I need” when it’s really a want.
Teaching our kids the difference between a want and a need can be so difficult. While it is tricky to explain to littles and sometimes confusing for them to work out in their minds, it is so important. If they think they “need” things that are very clearly wants, this is a major red flag.
They tell you to just put it on your credit card.
The first time I told my child we weren’t getting something because I didn’t have cash on me and he responded with, “That’s okay mom, just put it on your credit card”, I actually froze in my spot.
Kids see, hear, and absorb more than you might expect. Which means, they’re likely seeing and hearing ads for credit cards all over the place.
If you don’t show them your cards or talk to them about credit, from what they see on TV, they may think credit cards are a magical flow of endless money in every adult’s pocket. If they can verbalize this – it’s time to talk to them about how credit really works.
They expect to get something whenever you’re out shopping.
I feel like this was one of my biggest mom fails for a long time. Every time we were out shopping ANYWHERE I would allow my kids to pick something. To me, it was worth the money to have them cooperate on the shopping trip.
Boy was I wrong about what this habit was actually teaching my kids. The headaches it gave me down the road were far worse than simply having said “No” on the spot. Which leads us nicely to…
They throw a tantrum when you say “No” to a purchase in a store.
Every parent HATES being the one who’s kid is melting down in the store. So, many of us do whatever we can to avoid it. Like, letting them have whatever they want just to simply avoid the public embarrassment and shame that will come along with their tantrum.
In reality, if they react this way to your saying no, it’s a definite sign that they need to learn about what can and can’t be bought and why. They need to learn how money works and when and where it should be spent.
It’s never too early to start talking about money
Bottom line, it’s never too early to start talking to your kids about money and showing them the real value of money. The more kids see and are involved in your conversations about finances and budgeting, the better prepared they’ll be to handle their own finances as young adults.
If you grew up with no concept of the value of money, you don’t have to repeat the pattern with your own children.
Now that you know your child NEEDS to learn about money, what do you do?
First, you’ll need to know if they are cognitively ready to learn about money. Can they count? This is important. For more information on determining if they are cognitively ready to talk about money, check out this post.
If you decide that they can handle the topic, next you need a plan. This is where we can help you! We’ve devised an action plan for establishing a chore system and budget WITH our kids. To completely understand the value of money, it’s so important that your kids be involved in the family budgeting process.