Many parents complain that their children do not know the value of money.
That is not true.
It is more accurate to say that children do not know the value of their parent’s money. They certainly know the value of their money.
If you try to get your kids to use their money to pay the bills, you will know how hard it is.
Children have a clear differentiation between their money and money of other people.
They know the value of their money. They know the value of a dollar. They know what they can buy with a dollar.
They know that they should asktheir parents or grandparents to buy something for them, instead of spending their own saving.
They do not really bother to think about how hard their parents or grandparents had worked to make a living.
Their only concern is to preserve their savings, and try to get others to buy toys for them.
The problem is getting children to understand the concept of saving money in order to grow the money.
The concept of investing is very foreign to adults and children.
Investing also means that they have to forgo the joy of getting a toy or fast food now. They have to learn that instant gratification never makes anyone rich.
It is hard for anyone to see how a dollar can double in value every few years. They have to understand the power of compound interest in order to grasp the idea.
That is why parents need to teach their kids to know the value of money, as well as to know the power of compound interest.
They can use the example of plants to explain how a dollar can grow. A seed can grow into a plant to produce more seeds. Money can grow to produce more money as well.
That is the real value of money.