Why Teaching Children about Money is a Must in Today’s Society

Teaching money to kids is not always the easiest task for most parents. For most of us it's hard to recall how we learnt about money. There is always math class that gives examples of using money to purchase goods in addition and subtractions. The dollar mum and dad gave us to play at the arcade games. The famous monopoly where we all wanted to own every asset on the board!

Teaching children about money does not have to be a challenge. It is easier to grasp if we make it fun. Doing our grocery we can be teaching money to kids. They can compare like products and find not just the cheapest out of a bunch of products but also learn which is more economical. When its visual, children will understand how much something is worth. Do we buy 1L carton of milk for $2.50 or a 2L bottle of milk for $4.50?

We can make mathematics fun and easy when they start to count. Mathematics is an important contributor to our comprehension of money. This world revolves about money. Our success and failures rely heavily on how we can save or spend this vital asset called cash. The better we understand the role money plays in our life the better prepared we can be in making the most of it.

Financial education for kids is almost non-existence in our education system. Besides introducing children to a saving account in primary school I don't think we have been encouraged to save beyond this point. We live in a materialistic world where everyone wants the latest craze. We have a dispensable income but very little savings. It's up to us as parents to be teaching our children about money. We need to be upfront with its importance in our life and theirs.

Teaching children about money should be started as early as possible. Mum and dads should show kids all the denomination of cash in our society and how they use it to pay for their home, bills, food and gifts. Parents need to show kids how to save so when there is an emergency or special occasion they can draw off this saving.

Money has a key role to play in children's life as they are always exposed to new toys and games. For children to get hold of these items they will ask their parents for it. In turn mum and dads will have to pull out the cash to pay for these items. If financial education for kids is provided early kids will have a better understanding of what an item is worth. Kids could decide if an item is better to be purchased now or when it's on sale. Kids may even be wise enough to know that another item may be of better value. All through educating kids on money they can make it more worthwhile for themselves now and into the future.


Derrick Janson is an expert in teach children about money. He has taught about financial literacy for kids topics such as allowances, budgeting, saving money and making money for kids.