Teaching Kids the Value of a Dollar

Remember cash? Currency. Bread. Bucks. Moolah. Dough.

We Lutherans don't memorize Luther's Small Catechism any longer and we don't pay with cash.

One drawback of not carrying greenbacks is that our children don't know what they don't know. How can kids understand the value of a dollar when they rarely see visible evidence of money leaving your pockets? With credit cards, online bill pay and payroll deposit, kids simply are not 'in touch' with money.

You Can 'Change' That (Pun Intended)

Money skills are learned over time, and the best lessons are taught by what you do, rather than what you say. Help your younger kids see what money is by showing them coins and dollars and talking about what they're worth. Help them understand what money does by using cash for your purchases whenever possible.

Which, of course, is easier said than done since credit and debit cards are so convenient. There are lots of reasons to pay with plastic: perks, rebates, easy returns, credit history, you name it. But how will your kids know which dead president is on which coin or bill if you don't show them the money?

Take Action Tip for Today

Visit an ATM with your kid(s) in tow and talk about where the money you are dispensing is coming from. Tailoring the conversation to their age, mention it's your money and what a bank account is. OR, next time you sit down at the computer to pay bills online or review your bank statement, make a point of demonstrating these tasks to your children. Be intentional about showing them the regular income and outgo of your family budget.

More Resources

• Find a "Parents, Kids and Money Matters" or "Parents, Teens and Money Matters" workshop in your area.

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