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How to : Explain money to your kids.

The Beetles were absolutely right, Money can’t buy you love but it sure does buy everything else in your life. Buying candy, going to the mall and even that Netflix subscription that your kid loves, all costs something. So here are a few pointers to tell your kids about how money makes the world go around. 

  1. Lay it out : Lay down all the currency notes and coins that are available in your country on a table. Let them pick and play with it and show them the numbers ,If your kid already knows how to count. Quiz them about the value of the notes and coins to understand which one has a bigger sum and value. If your kids can already add then show them how to arrive at different values by using different types of currency. For example, a ₹20 note with a ₹2 coin makes ₹22 to show that the different notes and coins can be mixed and matched together. 
  2. Play Shop : Get a bunch of your kids favourites like candies,books or their favourite juice box. Now your are the shopkeeper and your kid is the buyer. Give them your purse with a little bit of money and ask your kid what they want to buy. When they pick out something tell them the price and show it to the them on the packaging. Now when your kid knows the value tell them to pay for it. Give them the time to figure out the math and hand over the money in exchange for the product. The precision and the speed of this activity can vary wildly. Just keep doing it once a week and have your ’Sunday Bazar’ with your budding shopper.
  3. Personal Savings Account : This for your kids is the old fashioned piggy bank. Whenever they get money on special occasions make them drop it in their bank and tell them that you do the same with your actual bank. Keep gifting them some savings with loose change every once a while. Periodically let them open the piggy bank and count how much money they have collected. This is great practice for counting and adding and also shows them the importance of saving money rather than just spending it. 
  4. Goals! Goals! Goals! : Now that your kid has some savings and has learnt to shop at the Sunday bazaar, take your kids shopping!!! Every Sunday is business Sunday, whatever chocolates or snacks they want they would have to buy them all from you with their piggy bank savings. Teach them how to bargain for a better deal. That way they would learn how savings can be depleted and how great bargaining deals are struck. 
  5. Get a job,Kid! : Most kids do chores around the house to get paid. It’s a time tested and proven method for teaching your kids about the world of Real Money. More chores = More money and Less chores = Less money. Chores done properly properly make more money then chores not so well done. However just remember one thing don’t go overboard, don’t keep a lot of difference in the money paid depending on the type of job. This activity is only to show your kids how the system works and not for you to let out your inner boss/manager come out in all its glory. 

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