Introduction
Today valuing money plays an important role in managing resources properly and forming a personal financial plan. The earlier a person learns how to value money, the better because the main characteristics regarding behavior are based on childhood. I think that the best way to teach children to value money is to demonstrate the proper example. Such approaches as restricting allowance and showing a real example will educate children to manage finances.
Main body
Children are influenced by their parents in many ways since they are mostly entirely dependent on their decisions. Singletary (2013) states that the allowance teenagers receive from parents may negatively influence their money management skills. She provided her personal example when she received no allowance, and it made her more aware of how to manage personal finances. I agree that giving children allowance without proper explanation of how to use the money may lead to the wrong perception of money by young people. Sometimes, when children receive money, they want to spend it all right away, primarily on things that are unnecessary in the long term. That is why it is important to teach children how to approach personal financial resources.
The best way to educate children’s financial literacy and teach them how to value money is to provide them with a good example from their parents. Children tend to copy the behavior of the people they respect or the people who surround them. If parents demonstrate timely bill paying, doing savings, and giving money to charity, children will see it and try to copy that behavior. I think that parents should control the way children know money values because, from an early age, children acquire habits which will possibly accompany them in the future. Teaching children such things as investing, creating saving funds, and doing charity by real example is the most effective way to raise wise people who understand how to approach finances.
Conclusion
In conclusion, giving children an allowance might not always be a good idea, and sometimes children learn how to manage money better without it. The key point of teaching children the value of money is to provide them with an example of how to maintain proper habits and behavior. Children need to have a so-called role model that will show them how to approach finances.
Reference
Singletary, M. (2013) Allowances and teenage jobs should have strings attached. New York Times.