Kids and Money

Article by Raymond Albanian of Total Merchants

Money is one thing that kids need to know how to value. It is important that they learn that money is something that is earned as opposed to something that is easily acquired. Parents should introduce the value of money at an early age so that they will learn how to handle money responsibly. At 4 years old, kids already have an idea on what money is, but it is the parents’ job to educate them about its value.


According to studies, people who are able to manage their finances are people who have been educated about money at an early age. Today, more parents are introducing the concept of monetary value because they feel that it is important that kids know at an early age that money is not something that can be acquired through easy means. One has to work for money to earn it.

Introducing money to children can be tricky and don’t expect them to get it right the first time. Managing money is not just about learning how to count it; it’s also about spending it wisely. Teach your kids that it is okay to buy things that they want from time to time but that splurging is not good. As always, lead by example. Kids will learn from you, whether or not you are aware of it. Kids are very observant and will do what their parents do. Once the concept of money is introduced, it is the guidance of parents that will later determine how they will handle their finances in the future.