Articles & News About Money & Coin Collecting

The Value Of Money

The value of money is something which children should be taught from the earliest possible age. In the modern day environment, kids seem to get given what they ask for, rather than be shown the hard work it takes to be able to provide it for them.

Pocket money is a good starting point, and by giving them a small amount each week and letting them decide what they spend it on helps to teach them about independence, and how the choices they make can make a difference down the line. For example, if a child is given ?2 every Saturday, and spends it all in one go on sweets, and then on the Wednesday sees a toy they want for ?1, they will quickly realize their haste the previous Saturday. They will only learn if they are made to wait until their next pocket money day so they can afford the toy ? simply giving them the extra ?1 (not much money to an earning adult) in advance will not teach them the error of their ways.

Furthermore, children can be taught the importance of saving small amounts of the money they get so later on down the line they can either shell out for something a little more extravagant than normal, or cover an emergency cost they didn?t realize they would incur. Again, by using pocket money and giving them a small piggy bank, they can be encouraged to deposit a small amount of their weekly ?2, and they will enjoy the feeling as they get as the toy grows heavier as the money piles up. Small gestures such as the ones suggested so far go a long way to ensuring children are appreciative of money from an early age, and understand the value of both budgeting and saving.

Parents would do well to adhere to the same principles, and may be surprised to find out that irrelevant of their level of income, they could ensure their child has a substantial nest egg waiting for them when they turn 18. By putting away a small amount of money each month into a savings account for their child, for example just ?10, ?20 or ?30, depending on what their disposable income allows, a parent could save a lump sum of around ?3000 - ?6000 from when they were born until adulthood. With an average adult wage of around ?500/600 a month and upwards, it is an amount not big enough to be noticed each pay day but certainly big enough to make a difference in a few year?s time. Even if the parent has to forgo one of their own luxuries each month, for instance cigarettes, or nights out, it will be worth it in the end, and probably beneficial to their health! It will certainly be a welcome treat, whether the child in question plans to put it to their university fees, or should they end their education at that stage, something else worthwhile, such as a deposit on a house or a first car. This is extra incentive for parents, because they will undoubtedly be the ones expected to provide such luxuries ? if they plan for it in advance, there needn?t be any problems!

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