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Teach Your Kids the Importance of Earning Money

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Your child sees money coming from your wallet and the ATM machine and they start to think that’s where it comes from, like magic. They don’t understand that money first has to be earned. Here are a few tips on how to teach your kids the importance of earning money.

Teach Your Kids the Importance of Earning Money

Teach Your Kids the Importance of Earning Money

It’s important to explain that adults get a job so they can earn money. Discuss with your child how some people get paid a certain amount of money for each hour they work, and others earn a set amount of money no matter how many hours they work. People have different skills for different kinds of jobs, and people usually choose a job (short-term employment) or a career (long-term employment) based on their interests and skills. Some people go to school longer in order to learn specific skills, like doctors and lawyers, while other people learn skills through work experience.

Talk to your child about what your job is and how you are paid; you don’t need offer money details for them to understand the importance of earning money. You might say, “I work at an insurance office and I manage a department. I get paid a salary, the same amount no matter how many hours I work, and I work about 40 hours a week. Every two weeks I receive a paycheck. We use that money to buy things we need, like food, pay our bills and buy some of the things we want. We also save some of the money so we can use it later for other things, like college.”

Discuss how some adults use their skills and talents to start their own businesses and when you’re self-employed, an entrepreneur, you get to be your own boss and you’re responsible for lots of important decisions. Also, you may not earn the same amount of money very month depending on the amount of work you have.

Once your child understands that everyone has to earn money to live a comfortable life, they might also want to learn how they can earn money too. Give them some ideas including doing extra chores and helping neighbors with things they need done in exchange for money.

Most kids like to think about what job they’ll have when they grow up. Let them know that they don’t have to decide yet, and get them thinking about their future by asking questions like:

  • What do you like to learn about in school?
  • Why do you like that subject?
  • Can you think of a job that you might need that subject for?
  • Can you think of any ways that you can turn a hobby into a job?

Even if your child’s dream job sounds ridiculous to you, offer them support and enthusiasm to keep them excited about the potential. You never know what other ideas will come to them. A lot of things will change between now and when they grow up and head out into the work world. For now, just let them freely explore different ideas.

What are your tips on teaching kids the importance of earning money? Leave them in the comments below.