Learning about Spending Money

Money, not as important as love and friendship and never as valuable as reputation.  It is also not an essential item such as food, water and shelter but it certainly makes life easier if you have enough.  But having enough money can be subjective, it is subject to how much you want and how much you spend.  Monitoring your spending can effect what you can do with what you have. 

Unfortunately a lot of people never learned about proper spending and finance.  They were never taught the value of a budget and that if you spend on one thing, it means you do without another, unless you are very rich!  Ironically enough, spending needs to be taught while the children are young, by the time they become teenagers their habits are often set!  Is there a proper way to teach young children about spending of money?  That is a good question!

One way is to teach children that money is like time and most people only have so much.  This means that the way they use their time effects what else they can do, and money is the same way.  If you spend your time watching television, you have less time to read a book.  If you spend you money on fancy clothes, you may be able to go to fewer restaurants and dances to show off those clothes.  What or how ones spends what they have always affects the choices, no matter if it is time or money!

Then there is the option of creating a money game!  Every child is given the same amount of money (This can be monopoly money or just a limit) and then they are allowed to “shop”.  This can be easily done by each student creating a shopping cart on some order web service such as Amazon.  Let each child put stuff in their cart and then see what they have when their money is spent!  You can have contests to see which child can get the most items without going over or even who can come the closest to spending their exact amount of money.  The nice thing about this is nothing gets ordered and it can always be deleted!  It also allows them to learn about the costs of certain products and to participate in the real world of buying!

Two simple ways to teach children about money and spending, and neither one costs a thing!  And that is the best way to spend an afternoon teaching about finance!