Skip to main content

10 Ways to Teach Your Children the Value of a Dollar

Teaching children the value of a dollar is one of the most important lessons that parents can offer, yet it’s sometimes looked over. Life is busy and you may feel like you can’t teach them such a big concept, but the truth is you can help them learn about money and spending by just going about your day and including them in it. By involving them, you are setting them up to be responsible adults.

Start Early

If you can, start talking about money and value early. Preschoolers can understand the concept of money in a way, and can remember it’s value. The next time you go to the store, let them pick something out and tell them it must be under a certain dollar amount. They can read the numbers and learn how that translates into money.

Play with Money

Young kids don’t understand the value of each coin and bill unless you teach them. Line up each coin in order of value and show them that even though a nickel is bigger, a dime is worth more. Show them that one ten-dollar bill is the same as ten one dollar bills. Small things like this will help them learn the value of each bill and how to count money.

Include Them in the Budget

Once your child is older and can add and subtract proficiently, give them an item in the budget to manage for the month. This could be your grocery spending or even just the entertainment money, but it should be something that isn’t a fixed bill. Give them the receipts and ask them to keep up with how much is spent and how much is left.

Give Them Real World Experience

The best experience to teach children the value of a dollar is hands-on real world experience. Look no further than the grocery store. Take your child with you and give them their own list. Maybe they are going to buy ingredients for one recipe. Give them a certain amount of money and ask them to buy the items on the list without going over. Then let them go to the cash register and purchase it. This activity will teach them to be sensitive about price over brands, and how sales tax comes into play.

Teach Them How to Make Their Own Budget

If your child earns money through chores or good grades, help them make a budget. Show them how to set it up and encourage them to keep track of their money on a regular basis. You could set up a savings account in their name or just start them off with a piggy bank. Let them know that you don’t want to spend all your money, all the time, but instead should save a portion of it each time you get paid.

Once they are older, encourage them to save money for a car. Look up the average cost of a used car and help them determine how much they need to save and how long it would take to pay for it themselves. In 2016, for example, the average cost of a used car is $18,000 and the average teen who works about 19 hours a week will make $7,163 a year.

Let Them Make Their Own Decisions

You should encourage them to save and teach them how to, but nothing further at first. Step back and let them make their own decisions and mistakes. If they want to spend all their money on the latest toy or video game, bite your tongue and let them. It’s better they learn now about these mistakes than later as an adult.

Use Cash for Purchases

You probably use a credit card, debit card, or checks for purchases most of the time. This is fine for you, but when your child is learning the value of a dollar, it can be misleading. Start using cash and show them how far your paycheck goes. Teach them that the little plastic card or paper check isn’t “free” money and you can’t just go to the ATM and pull money out that you don’t have.

Donate to Charity

Young children don’t understand that there are people that are less fortunate out there. It’s not something on their radar or something that they think about unless they are confronted with it. By donating to charity, you can teach them that not everyone has the money and things that you have.

Teach the Difference Between Wants and Needs

A big part of the value of a dollar lesson is teaching your children that you must make choices when it comes to spending and it’s important to be responsible. Teach them that bills and other needs are taken care of first before you even think about a want. If they are younger, this means showing them that the new toy they want isn’t in the budget this week. If they are older, give them a set amount of money for the month and tell them to budget it, but make them responsible for a bill, such as their school lunch. They need to budget a small bill with their wants so they learn that you have to make decisions and sacrifices with money sometimes.

Be Honest About Credit Cards

It’s okay to use credit cards and teach your children about them, but make sure your message is clear. The money that you charge on the credit card could cost you more in the long run if you aren’t careful. Teach them that they shouldn’t consider a credit card until they are older and responsible with their spending and have a full-time job that will pay the bill. This is so important because young adults will get bombarded with credit card offers the minute they go off to college and could ruin their credit for many years.


Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good. Try some of these great recipes too!  Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar in the mixing bowl and let stand for 5 minutes. Add the flour and salt and mix until a ball of dough forms. Roll ball onto a floured counter top and knead for a couple minutes.  2. Put dough in an oiled bowl and let rise for 30 mins in a warm place with a clean cloth draped over top. While your doug

DIY Table Revamp - Guest Post

Hi all! I'm Tiffany from This Motherhood is Brought to You by Xanax and I am so excited to be a part of the Guest Post Swap and to be Amanda's swap partner! I love love love her idea on how to make indoor snowballs with egg cartons. I am definitely going to have to try that with my kiddos since my smallest one has decided that it has to snow for Christmas. Poor baby doesn't know snow is hard to come by in Alabama :( For my guest post I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!

Amazing Ways To DIY Your Nails In The New Year

Having beautiful fingernails can really boost a woman's confidence. Not only do they feel sexy and sassy but they look well maintained and professional. There are a number of different styles of manicures you can get done professionally but they can be costly and if you are trying to stick to a budget and save money it is best to give DIY a try. These beautiful nail designs are easy to do and look fantastic. There are some that are more intricate and some that are simple but all will be amazed that you made them yourself. Try using small gems and crystals at the tips to add a touch of sophistication.  Tips make a world of difference and they can be as easy as you wish. There are so many beautiful polishes that have amazing colours you can match. These simple nail designs can be done by any busy lady and make a lasting impression to anyone who comes across them. Hot Beauty Health has all the instructions for these super simple nail designs. There are a large number