The best way to teach money skills to your children is by giving them a comprehensive financial home schooling. The school may be the avenue where your kids learn new things, but it is in the home that they teach the value of hard work and money. Parents are the biggest influencers of children, and thus is it your responsibility to teach them responsibility in the use of money.
- Never be afraid to say NO
We all want the best for your children. As parents, our duty is to provide them with their needs, but bear in mind that wants can be optional during their early years. Never be afraid to say NO to them once in a while, especially if the things they want are not within your budget. Explain to them your refusal to purchase things for them. Saying NO to them without explanation will only harbor negative feelings and may even damage your relationship with them in the long run.
- Explain and show them the concept of working hard for money
The foundations of hard work will start at home. Applying the concept of reward for the chores they do around the house will make them appreciate their earnings more. Start early by rewarding your kids with sweets and extended TV or computer time. In some cases, when they want to buy something, make sure to deal with them like adults. Tell them that if they work hard or if they do chores around the home, they will then be paid with money which in turn they can use on the things they want.