How do you talk to kids about money? By first understanding the way we handle money has changed, experts say
- First, understand that increasing use of debit cards, online retail and other virtual transactions – with no cash actually changing hands – is a fundamental shift in the way we pay for goods and services. Much like streaming and downloading have transformed the music industry (where there is no longer need for a physical package like a cassette tape or CD), the exchanging of bills and coins back and forth is rapidly disappearing. Make a point to use cash for some transactions in front of your children.
- Although cash is becoming less commonly used, it is still a good way to teach children about money. Children largely learn by touching; physical money (coins and bills) allows them to grasp the concept of paying for things. Experts suggest starting early, with small amounts, to set the emotional stage.
- Using their own money to buy things allows children to see how the exchange works. Instead of buying a toy for them, allow the child to buy a candy or a toy so that he or she can experience the transaction – getting what they want but recognizing that they receive less money back in exchange for the purchase.
– By Ottawa Parenting Times Staff, with files from the Chartered Professional Accountants Canada
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