January 30, 2020

40 Comments

From Apple Pay to Tap and Go, technology is enabling Aussies to conveniently pay for items without their wallet or physical cash. However, a cashless society is leading to kids thinking that our little plastic cards hold an endless amount of money (if only!).

In a world where cash is becoming a rarity, it is important to teach children about the value of each dollar.

Here are our top five tips for teaching your kids the value of money in a tech-savvy world.  

1) Separate Savings and Spendings

Educating kids from an early age to save money is an important lesson that every parent should teach. Get rid of the piggy bank and instead, create three smaller, more manageable funds for your children to save money. These can be labelled as spending, saving and sharing and is a great way to demonstrate that money is used for different things in life. Kids will also begin deciding what is most important to them as when the money is in the jar, it must stay there.

2) Recycle your household bottles

Teaching kids to recycle is an important lesson to learn and will earn them some money at the same time. TOMRA’s recycling machines will not only be a fun activity for kids, every drink bottle or can returned to the machines will also earn them 10 cents in NSW, QLD & NT. This technology will teach your kids the importance of recycling and how to save money as well as providing a fun bonding activity for parents and children. If you are a parent who loves to teach their kids about the gift of giving at Christmas, children can also choose to donate their pocket cash to Bottles for the Bush this holiday period where every 10 cents will go towards helping families doing it tough this summer.

3) Coin Collecting

Kids as young as three years of age can grasp basic concepts of spending and saving money. Coin collections don’t necessarily need to be rare either, even the most basic of collections can provide your child with a hobby that teaches them the value of different coins. The best part of coin collecting is that it is a super fun way to get kids involved in money without having to spend a tonne of it!

4) Play games with your kids

Teaching kids about the value of money is important, but you also need to teach them how to count it. Kids of a younger age can start with basic snakes and ladders and they will be able to count to 100 in no time. For older kids, Monopoly and Monopoly Junior are fantastic games that will have them counting money and learning to use it strategically.

5) Doing household jobs

Doing household chores and jobs is almost a rite of passage for kids growing up and teaches them the most valuable lesson of all, where money really comes from. Setting small chores each week for your kids with monetary value is one of the ways kids are first introduced into the working world. Earning pocket money will show children how to work and get paid accordingly for their efforts while allowing them to save for things that they really want.

How do you teach your kids about the value of money? Tell us in the comments below.

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  • Great idea!! Great idea!

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  • I’ve started teaching my kids about money at a young age and it’s made an impact in their life. Doing chorus for pocket money and recycling cans and bottles for some extra cash.

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  • Wish I had done some of this when I was younger

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  • Recycling bottles is so easy and a good way for money to be saved.

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  • Anytime my kids get money from anyone it is always saved. They have never spent a cent of it. We don’t make a kids do “chores” and pay them for it. That is part of life and they need to help around the house. If they want something we will buy it so they keep & save their own money for when they actually need it. If what they want is rubbish or will just get thrown in the corner and not used then we won’t buy it.

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  • We have always led by example and thankfully, it stuck and sunk in. My 18 year old is a good saver. So all those things I taught him when I thought he wasn’t listening, are now being demonstrated by my son. We taught him to save, to think about spending and debt, to donate, and he’s doing really well.

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  • We do can/bottle collection. We let our son pick out his own wallet and we put the collection money straight in. He is still quite young so there isn’t alot he wants but if we are out we let him use his money and give it to the tellar.

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  • now my girls are older and when they want higher priced items, we work out a savings goal from chore money, birthday money etc. We research the cheapest and most expensive price of the item they want and aim to save for the most expensive price and they when they have enough or close to enough we start looking for the item and try to by from the lowest priced supplier (meaning they are learning how to save and then how to shop smart to maximise their savings) – we are currently doing this with my 9 year old daughter who wants an ipad!

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  • We showed my 4 y.o. nephew that he had to pay for things when we were in an opportunity shop looking for a particular item. He spotted a toy and asked for it. We explained to him that he had to pay money for it. I went ahead of my Mum and nephew and advised the lady at the counter that we were giving him some of the money to pay for it. She reckoned it was a wonderful idea. It taught him that it costs money to buy things in shops, that they are not free.

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  • We play budgeting games ( give X amount of money to spend at the shop – here’s what we need) so they can practise figuring out how much they need to get whats on the list, how much they’ll have left and if there’s money left they also get to figure out how to spend it. For saving we have two money jars one for spending and one for saving that doesn’t get touched and at least 10% of spending money must be saved. Once the jar is full it gets deposited at the bank. My eldest spending habits went from willy nilly money grows on trees style to now saving most of what she gets until she finds something she wants to spend her money on or little treats for herself and younger siblings every now and then. It’s been fun to watch the transition.

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  • My boys always got pocket money for doing jobs around the house. I opened an account for them and it was up to them if they spent the money or banked it. Thankfully they now know how to balance their finances.

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  • I tried a number of these suggestions. Sadly, my kids didn’t fully get the finances thing til their first jobs. One ended up in so much debt (thanks to a car accident and being unable to work for a number of months, and the ease of a credit card!) that she’s still paying it off!

    Reply

  • My 8 years old gets pocket money. It varies from week to week though and isn’t based on chores. Simply because chores are a part of everyday life. And we as adults don’t expect to be paid for doing the daily thing.


    • I agree, chores are part of life and i don’t pay my kids for that either. Nobody pays me when I do the dishes or put my child in bath, cook diner or empty the bin; that’s normal part of life

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  • My kids get pocket money. It is divided into 3 lots. $1 a week for banking, $2.50 into a money box for buying gifts for family at bday and Xmas and $2.50 towards saving for something they want or spending on themselves.
    We also teach them the value of money by charging a replacement fee if something is deliberately broken. For example, when my boy grabbed his sisters colouring book and tore it in half, he had to buy her a new one out of his money! When my girl drew on her bedsheets she had to pay a replacement fee for that too as she has a desk that she knows she should be drawing at. They have learnt that things they own cost money and therefore need to be taken care of, because we won’t just run out and replace it because they didn’t take care of it!

    Reply

  • Loved reading this article. I am quite ‘old fashioned’ when it comes to money with saving and paying…..no paypass…no tap and go etc. These tips are great to encourage children to save and teach them the value of money.

    Reply

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