Moms Talk: How do you teach children the value of money?

In my house, there seems to be a constant “need” for things– a Nerf double barrel water gun, a triple pack of Juicy Fruit gum. 

The lazy days of summer only exacerbate this need by providing more opportunities for kid-accompanied errands.

Recently, my husband shared an article he received online from his financial planner recommending, among other investment strategies, a way to teach young children about money. 

The author suggested giving your children $20 for grocery shopping.  She said that parents should then allow the kids to create their own lists, and pay for items with the $20. This way, children better learn the value, and limitations, of money.

It seemed like a great idea to try out with my children. But the experiment took an unexpected turn. 

My daughter, at first giddy about receiving an unearned $20, was quickly disappointed to learn that the money had to be devoted to her real needs– weekly meals and snacks.  

So, she quickly changed tactics and, adopting the entrepreneurial spirit, devised several ways to earn a quick buck. 

It began with stationary, which she painstakingly designed for each member of our family. She created elaborate monograms and illustrations, and charged $1.50 for four cards. 

All biases aside, I was very impressed with her creativity!

The single bills floating in her “tip jar” (an empty UTZ pretzel container) were inspiration enough to take her scheme further by opening a lemonade stand worthy of this week’s 100-degree temperatures.  

My husband and I were beginning to take notice.

So, to encourage her, we created a set of summer chores and expectations, such as feeding the dogs and making the bed, to help her earn spending money for her Hunt Valley mall "needs."

Although the experiment didn't work out as planned, simple lessons in money management can never hurt. And your child may end up surprising you.