It is the major cause of most marital breakdowns and depression in adults. It’s sends people into bankruptcy, which has disastrous consequences, not just for the individual, but society.
It’s time get over the negative feelings surrounding money and learn to embrace it as a necessity in our lives.
Yes it is. Money is as essential as water, food and shelter now. It can definitely be considered as a basic need.
Without it you cannot survive, or you will have a very low standard of living. It’s time to allow our children the opportunity to thrive, like they were born to do.
Here’s a few tips to help your child learn the fundamentals of this basic necessity.

Watch your language about money

You are the biggest influencer in your child’s life. Your child will naturally adopt what you model to them via your words and actions. Watch statements like Rich people are thieves. Only the wealthy get ahead. Filthy money… and the negative things we unconsciously say. Money won’t come to you if you keep attaching evilness to it and keep shutting the door in its face.
Take your arguments about money with your partner to a place they can’t hear (better yet, don’t argue) If your children hear these arguments, they will develop the belief that money brings pain and destroys relationships. Ouch! Imagine the self-sabotaging that can come later with that subconscious belief.

Speak to your child about money

Don’t say to your child “we can’t have it because we can’t afford it” or “we don’t have the money”. I know you don’t have the money most of the time, but try to turn your no response into a positive response.
For example:
“Right now it’s a little challenging to pay for this, but, perhaps in the future. You tell me. What do you think you could do to possibly create the money for it? Maybe we could bake a cake together instead of buying this one, which costs more because someone else baked it. We don’t have to pay them for their time then.”
Can you see the concepts of money you are teaching them about just from this simple re-framing of “we can’t afford it”?

Teach them to save from an early age

Kalyra already has nearly $500 saved for her trip to Disneyland. Every week we allow her to round up our spare change “Usually this is something we waste, so why don’t we save it for our dream.”
Any holiday or birthday money she gets, she puts into her money box. We count the money in the box together and get all excited about the amazing job she is doing saving for her dream
We have her hand the money box to the teller when it comes time to deposit it. She watches them count it (I patiently answer the why questions) while she eagerly awaits the bank balance.
“What is it Mummy?” I tell her, her eyes widen with delight and she carries that home like it’s fragile glass and races in the door to tell her Daddy how smart she is for saving that much money for her dream.

Teach your children what happens to the money in the bank

The bank keeps it safe for us, but they also take our money while it is sitting their doing nothing and they make the money work for them. They go and invest it and help it to grow. When it grows they leave a bit of that growth behind for you as a way of saying thank you.
See if you are clever with money you can make it work for you. You’ve got to find ways to make your money grow, with as little effort from you as possible

Help them see how money can grow

Set up the right bank account for your child. We just discovered the Bank West Children’s bank account and opened an account for the girls so they can earn 8% interest per month. This is a fabulous way to show them how their money can grow.
Let them see the statements and show them what they earned each month for doing nothing. Allow them to decide how much they want to deposit each month and where the money will come from.

Play money games

We all know Monopoly. It’s not just a fun game, it also teaches about investing, debt and bankruptcy.
Don’t just mindlessly play it, talk with your child as you go. Help them strategize and ask their thought processes in regards to buying. It’s not always a great idea to buy the house on Mayfair. Most of the time the train stations or the two cheapest houses on the block, give you a greater return.
Shops, hotels, restaurants all these imaginary play games help develop money concepts. Monitor your language and model right.
Rich Kid Smart Kid is a great resource for games and educational tools.

Allow your children to create mini-businesses

We all know the lemonade stands. Don’t get in the way of your children when they create one, help them with it. (Just don’t let them start selling things at school, because that will lead to trouble.)
My nephews have started their own neighbourhood lawn mowing business. They have just hit their teens and are already building a lovely little savings account. A couple of lawns a week – they’re out in the sun getting active, and earning money.
If your children take on the entrepreneurial spirit, use it as an opportunity to talk about responsibility, saving, and having another cash to cover expenses.

Move from pocket money to salary

Again, it’s a terminology thing. But words carry meaning. Children no longer receive pocket money, they earn a salary.
Why? Because you are teaching them from an early age to respect money: that it is something that has to be earned.
Craig and I have been discussing how to do this in our family life recently. Kalyra is old enough to start earning, and whilst Savannah is just a babe, there is no reason we can’t expose her to the concept.
You can start with chores. Keep it focused on earning their salary; it is not a reward for doing a chore. I would recommend certain jobs, like keeping their room tidy, be something they just have to do, without earning a salary from it.
Sit down and discuss with what they would like to do and come up with a salary plan. As we run a business from home, there are certain business related tasks Kalyra could help with to earn a salary. This only needs to be $1 or $2 a week.
Once your child gets older, you can present the ideas of taxation and giving back. So once they receive their salary, they have to give 10% back to you in taxes. You can even go a step further and instruct them to donate 5% and save 10%.
You have the obligation to pay them on time. As they get older stretch payment to every fortnight or month, so they understand how the real world works. Once they turn 15, if they have not yet made millions from selling lemonade, encourage them to find a real job.

Allow them to make purchase decisions

Kalyra was pushing for me to purchase a doll for her recently. We spoke about how many she already had, and didn’t play and so it wouldn’t be a wise spend of money. She persisted, so I gave her the option. “You can, but you must use your money in your bank.”
“That’s okay Mummy, I don’t want the doll anyway.”
Talk to them about their saved money and good ways in which to spend it. Let them buy their treats every now and then, and if you have to teach a lesson, let them blow the lot and suffer the consequences of having nothing left. Talk to them about this. How did it feel? Was what you brought worth it? What did it bring your really? How long did that benefit last for? What could you do next time?
Help them create a money plan. They will be torn between hating seeing their money disappearing and wanting to buy things they think bring them happiness. Help them by devising a plan that caters to both.

Let them help with your financial planning and money management

This is probably a scary thought, but one that can teach your child some valuable lessons. They are earning a salary of $3 a week and then they see your electricity bill is $100.
“Wow Mum, things cost a lot of money. You have to work hard to live right?”
Let them help you write up your shopping list, set budgets, participate in the planning of how you spend money.
If they are older, you can even let them write the cheques out for you.
How do you teach your children about money?