5 Ways To Help Your Child Understand The Value Of A Dollar

Many schools forgo teaching children some of the most valuable life lessons they need to learn, including the value of a dollar. Other than using money as a math problem example, most kids don’t learn the basics of finance while they’re going to school. They don’t know how to balance a checkbook, what a credit card is and how it affects your credit score, or even how to build a good credit score. The fact many kids don’t learn these lessons growing up means they also fail to learn the value of a dollar. As a parent, it’s your job to ensure your kids learn the financial tools they need to grow up and financially savvy. These simple tips can help your children learn to manage money as well as understand the importance of a dollar.

Three Jars. Savings, Spending, Sharing

If you want your children to learn the value of a dollar, give them three jars and name them savings, spending, and sharing. These jars represent the real world, and it helps them to learn the importance of each one right now. Each time your child earns money, have them contribute to each jar. The savings jar should take up half their income to help mimic the real world. Thus, if your child earned ten dollars, they should be required to save five dollars. Your child should contribute a portion of the remaining five dollars to their sharing jar. Teaching your kids to donate their money to a church or their favorite charities is always wise. Most individuals suggest donating ten percent of their income, so your child should put away one dollar. The rest can go to the spending jar. You can personalize the amounts, of course, but this is a generic idea to help you get started.

Continue reading to learn about giving commission rather than allowance.

Give Commission, Not An Allowance

You can do either, but an allowance is not the best option in some households. For example, you might offer your child an allowance for doing their chores every week, but it might not work as well as offering them a commission on their chores each week.

Giving commission rather than an allowance is similar than giving an allowance, but it’s a little more defined. Rather than offering your kids a set amount of money each week to do their chores, you can give each chore a dollar value and allow your child to earn what they want. For example, instead of giving them five dollars per week to keep their rooms clean, try issuing them twenty-five cents per day for making their bed, fifty cents each time they unload a full dishwasher, and so on. Your kids might not do the chores, so they might not earn their commission. However, they will quickly learn if they don’t do the work, they don’t earn money, and the more they work, the more they earn.

Continue reading to learn how to turn waiting into an advantage.

Good Things Come From Those Who Wait

Good things come from those who wait is a good strategy for teaching kids about the value of money, as it allows them to see the value of a dollar as it works for them. For example, say your child is careless with their tablet, leaves it lying around, doesn’t seem to care if it gets wet, and has almost dropped it a half dozen times this week alone. They're going to break it because they think they can just get a new one. Instead of this, try saying to your child they have to earn the money needed to replace it if they break it and want a new one. It takes time to earn enough to get what you want, and suddenly the new tablet will be so much more important. Your child will think of all the hard work they put in to get that tablet, and will appreciate the next one a lot more.

Continue reading to learn how negotiating comes into play with the value of a dollar.

Encourage Negotiation

Negotiation is a lost art for so many, yet nearly everything in life is negotiable. You can negotiate everything from your hourly wage to your vacation time to your ability to create a flexible schedule. You can negotiate the cost of a car, insurance, and everything in between these days. Thus, why not teach your kids to negotiate. For example, if they think they deserve a raise after months of hard work on their chores, hear them out and let them negotiate. Don’t shut them down immediately. Ask them why they feel this way, to provide examples, and then offer something lower than what they were asking for. The more you allow them to negotiate with you, the better they will become at negotiating in life. It’s a lost art and a basic skill, and it’s something you should take into consideration. Encourage negotiation and watch your kids thrive.

Coupons are yet another great way to teach the value of a dollar. Keep reading to learn more.

Coupon Helper

Coupon helpers can help you around the house in more ways than one. For instance, if you teach your kids how to use coupons, you’re teaching them to save money. One way to do this is to allow your kids to go online and search for coupons for you. Let them help you organize them, find what you need, and use them in the store. This helps kids learn the value of a dollar by allowing them to see what you’re spending, how you can save, and what you’re getting the most for. Each dollar you spend when you use coupons is a dollar saved, which is a valuable life lesson for your kids. If they can see you saving money on little things, it might become a habit for them in their own lives. They might not save millions, but they have the potential to save a lot of money this way. It’s a good life lesson to make your kids your coupon helpers.