Money is a magical thing to a child. Adults have a lot of it, in their opinion, and the day they get their pocket money is one of the best times of their lives! But as we know, money isn’t always a sunny, fun thing. That’s something we need to make our kids aware of as well. 

Kids need to learn about the world they’re growing up in, and whilst they’re young, they’ll absorb more knowledge than ever before. And because of that, it’s important to introduce them to money at a young age, and highlight both the good and bad aspects of it. So, without further ado, here are some of the grey areas the financial world has to it, and what your kids ought to know about them. 

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How to Know They’re Spending Too Much Money

Kids should know that money doesn’t grow on trees, and when they want to spend some, they won’t be able to spend forever. Of course, the idea of object permanence can be hard to teach to a kid, but it’s definitely possible! Put the coins out in front of them, and slowly take them away using hypothetical purchases – when there’s none left on the table, ask your child what they see. 

Having a Debt

As a kid, the idea of debt can be incredibly scary – it’s something they see on the TV, in all the adverts and the drama TV shows, where scary men in suits bust into a house and take all kinds of things away with them. Well, it’s time to make sure they don’t grow up with that notion, and only that notion, about debt in their head. 

Teach them how easily debt can be resolved. Teach them that looking for an instant loan might be quick and easy but needs to be thought about at length. Teach them to be careful about who they borrow from, and to always look to family first. Teach them that you can always be relied upon! 

The Benefits of Saving Up

Saving can be something weird and alien to a child. A lot of the time, kids are about instant gratification, and if they want something, they want it now! But if you manage to get ideas about saving in early, they’ll be able to stop themselves and think automatically!

They’ll be able to look at the toy in the shop and work out how long it would take for them to earn enough pocket money. They’d feel more secure about making that decision, and they’ll be able to comfort themselves with the idea that they can come back later. All in all, you’ll teach them to be very mature about their money. 

There’s a lot of grey areas in the money world, but they don’t have to be unknowable forever. Make sure your kids are aware of the troubles money could give them, even when they’re not sure what they’re running into – it’s important for the future.