Toddlers are a quirky bunch. They are far more intelligent than we as parents generally give them credit for, and they always find a way to amaze us with the things that they pick up on their own. This is the number one reason that we should teach our toddlers about money. They are going to pick it up somewhere, and it should be coming from you and not someone less than qualified to teach fiscal responsibility. How then do we teach our toddlers about something as complicated as money?
There are a number of differing opinions out there about just how much information a parent should share with young children about money. The most common solution is to teach them the general aspects of money, but do not let them in on financial pressures and problems in the family. My solution lies somewhere in between. I do not believe that you are doing your child any favors by candy coating financial burdens. These are prime learning opportunities, and can be used in a way that will not damage your child or their psychological makeup.
The first thing I did with my kids was to get out the monopoly money. This stuff is perfect as it gives the illusion of real money without risking your toddler tearing a real twenty to shreds. They then get to earn money through any number of different things. They also got to pay money when they got anything. Anything that was not a gift from Mommy and Daddy had to be paid for. (with monopoly money of course) This created a sense of responsibility in our kids, and they learned the value of the dollar very early on.
With this strategy, we used situations that arose in their play money to explain situations that arise in real life. They got it and understood very clearly. We did not say things that would in any way scare our children, but we did not lie to them either. We let them understand what is expected of them when they grow up, and that life was structured. Money played a part in that structure, and you had to work hard for the money that you got.
Over time, the girls learned many different coping strategies as well. For example, when we went out to eat, the girls only got dessert if they had the money (play money) to pay for it. We had a time or two where we had to let them pitch a fit because they did not save their money. That was worth the lesson learned, as they now know they must hold back a dollar for nights out like that and toy shopping. This is teaching them a valuable lesson about money that will be more valuable as they get older.
The bottom line to teaching your toddler about money is to make sure they have some system to relate to. If they are just given everything with no explanations, they will grow up sheltered and set up to fail in the real world. The more hard knock lessons you can teach them in a soft knock manner, the better off your toddler and their money will be when they grow up.
Image Credited To Flickr user graciepoo
It is the most important task parent has to do .
Comment by Ronak Jain — April 29, 2009 @ 3:39 am