The money talk is one of the important conversations that you should do with your kids knowing that this subject is not tackled at schools.
Kids nowadays are more aware of the importance of money due to a lot of factors; for example when they ask us why do we work and we answer them that we do so to get money and provide our life needs or when they over hear us budgeting for the month and/or year ahead or even when they see us paying at the grocery store.
We all want our kids to be finance smart and some kids turn out to be natural at that as adults, others just don't! But it's still our task and teach them.
Talk about money
Tell your kids how hard it is to earn this money and that they shouldn't take what you provide for granted. Explain to them the different types of "need", so when they ask to buy something they are able to know if it's an important need, and urgent need or just a need.
Set an example
Lead by example, show them how you sort the items that you are planning to buy based on their importance and when you can afford them.
Get them involved
Let them write with you the grocery list and tell you what they would like to buy and discuss it with them.
Set basic rules
It all starts with that grocery or shopping trip that you're going to do and take them along. Set rules on what and how much are they are allowed to buy. Teaching them to stick to the budget they have is very important. it doesn't only promote financial awareness, it also teaches them to be content and happy with what they have.
Teach them to appreciate
Kids will take the money we give them or the items we buy them for granted but when you start giving them money for tasks they are doing then only they will recognize the importance of it. And they appreciate it even more when they know that they have to spend from this money that they worked "hard" for.
Teach them to wait
It might be a hard lesson to teach to kids but researchers say that the ability to delay gratification in kids could be linked to how successful they will become as adults. If they are asking to buy 2 items teach them either to choose one, or to wait until next time.
Make it Fun
For example: when shopping and kids are with you, teach them how to look for deals and let them feel the achievement they did when they find a similar item at a cheaper cost.
If you feel that your kid has been working "hard" in order to collect enough money for something that he wishes to buy, surprise him by matching what he has or at least topping it up so he can afford what he wants. As waiting for too long might get him demotivated.
After all, and in all of life's aspects, our kids will add a lot to what we teach them but it's our task to give them the basics that they should build on.