Table of contents
Teaching your kids the value of money from a young age is very important because it determines how they’ll handle money when they are older.
When they know the value of money, they learn to prioritize their needs and wants.
What is the value of money?
It’s important to not only teach your kids the nuts and bolts of money such as budgeting, and saving.
You also need to teach them how they feel about money.
And that’s possible only when they know the value of money.
(If something is valueless to you, why would you attach any feelings to it(?))
Imagine I have placed a Rs. 10 note, a Rs. 100 note, a Rs. 500 note and a Rs. 2000 note on a table before you.
What do you see?
Most people (98%) will say they see a 10 rupee note, a 100 rupee note, a 500 rupee note and a 2000 rupee note.
If you also answered this way, you’re only 50% accurate.
You see, when asked this question, people give an answer based on the numbers inscribed on the currency note.
But, is it the number that gives the currency note its value?
Absolutely not!
If this was the case, the 1000 rupee before demonetization should still be valuable now, right?
The value of the note is represented by the amount of items that note can buy;
not by the number inscribed on it.
A 1000 rupee note is valueless right now because it can’t buy you anything.
Whereas, a 500 rupee note has value because it can buy you items worth Rs. 500.
This is what you must teach your kids.
Once they understand the value of money, they will ask themselves this question before making any purchase –
"Is this really worth the money I am paying?"
The moment you see your child ask herself/himself this question, you know they are responsible with money.
This will greatly increase your trust in them.
Therefore, by teaching them the value of money, you not only ensure a healthy relationship between your child and money, but also between you and your child.
Conclusion
Money is only a piece of paper. It is not money itself that makes it valuable.
It is what money can buy that gives it value.
I’m sure you don’t want money because you simply want stacks of paper piled up at home.
You want money because it allows you the freedom to live the lifestyle you want for you and your family.
Once your child understand the value of money, they will handle it more responsibly and accountable.
