One of the things that a parent most dreads is giving their child the ‘facts of life talk’, however there is another concept that is probably just as important for parents to explain to their children, and that is the concept of money.
Children need to understand where money comes from, what it stands for, what is it is useful for, what are things that are more important than money etc.[Teaching Kids about money]
Children have to be taught the value of money; this is in the interest not only of the parents but also of the children themselves.
Teaching children the value of money makes them more respectful of money and less cavalier about it. They also then learn to be less demanding if they understand that money has to be earned.
Children don’t start out understanding that money has to be earned; that it is a tough job earning it. This concept is something that should gently be introduced to a child, in as tactful a manner as possible so that the child does not take it as a reprimand.
The reason that this is an important concept for children themselves to learn is that they should grow up understanding the importance of hard work and industry. They should be able to understand the value of earning as against getting or simply having.
For purely practical reasons as well, teach your child about money. This will strengthen your child’s counting and mathematical skills and let them get better at mental calculation.
If you let your child make small purchases at a convenience store, it not only gives him or her the importance of doing something of value for the family, it also teaches how money works, what it buys and how much of it can be bought for a given amount.
You can even explain concepts such as fractions and decimals to your child through the general idea of money.
As for when is a good time to explain the concept of money, perhaps there is no time too early to explain it.
Here perhaps earlier is better. As soon as you find that your child has sufficient comprehension skills and verbal skills to indicate understanding, you can slowly and gently introduce the concept of money to them. This can be done in a gradual way and in accordance with the level of maturity that a child displays.