Remember how we used to collect the little donations and tips given to us by our parents and save them in little jars and piggy banks back in our day? The way we felt them in our palms to check whether they've gone heavier and the excitement felt when finally counting the bills and coins is unmatched.
However, do you think kids today feel the same way about money? It's a concerning question as we know that they don't. This could be because children don't understand the hard work and effort to earn it. They don't perceive the expenses incurred in everyday living.
Every parent worries that their children won't understand the value of money and will be ignorant of it.
Hence, here are some methods and means you can use to make your child understand and value money. Also, as parents, you should have money literacy in place. If you want some guidance on it, please talk to us.
Although the topic of money could be a sensitive one to talk with children about, it's important to have a conversation with your kids regarding the household budget and expenses.
Tell them about the daily expenses incurred, starting from how much the car cost to run to groceries.
You should consider the type and amount of information your child can absorb relating to these matters. It doesn't mean you need to take out the Excel sheet and budget with them.
An effective way to prove useful is by making your kids witness these expenses — having small conversations while shopping or making a transaction will allow children to understand that currency is being exchanged. They'll learn that nothing comes for free and learn to value goods.
For your child to understand and appreciate money more clearly, assigning chores that align with their capacity and interest can allow them to understand how actions and creating value can be used as an exchange for money. Of Course, it's important to do this strategically and explain why you are doing it to the child. It may be useful to do this less often than usual.
This will make them aware of the effort behind every single earned bill, and they'd be vigilant about the expenses they make and reduce wastage.
Once children get hold of money, whether as a birthday gift or money earnt doing chores, they may have their own 'goal' of purchasing a toy or food. It is OK to let your child buy their favorite toy. This will allow the child to understand the 'full circle' of a transaction through earning, saving, and spending.
Every child considers their parents to be their first role models. From actions to words, children follow their parents in every aspect. As the child's mind is said to be a sponge, it is important to be careful with what is said and done in front of children.
The same follows when it comes to money. As Muslims, we are taught to be thoughtful of how, why, and where we spend money - especially in front of children. As we do not involve ourselves in illegal trade or malpractices, it's important for your children as they grow old to educate them on the illicit trade and malpractices when it comes to money and business.
With some understanding of finance, you can also discuss the key differences between conventional and Islamic finance products. We have some resources to help you get the conversation rolling. Afiyah Financial Services help with Islamic Home Loans and Muslims making better financial choices, so let them know that you have an Islamic Home Loan and why that is important to you.
Hopefully, this helps you teach your children the importance and influence of money and assist them in building a better future. Do you also want to create a solid future for your family? Please have a quick chat with us to find options to move away from conventional products at Afiyah Financial Services.
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