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Training

Why are parents having such a hard time, here

especially, getting kids and teens to understand the value

of money? Psychologist Devika Singh-Mankani points

out that children and teens are still developing

the cognitive skills and brain processes that are

applied to money management. “The brain is still

developing abilities such as identifying needs

versus wants, delayed gratification, gratitude,

and recognition of positive experiences

brought about through the privilege

of access to money,”

she explains.

Yet with the

frenetic pace

of today’s

busy lifestyles,

sometimes

parents just

don’t have the

time to do this, or

are not modelling the

behavior themselves which makes it hard for children

to replicate. Also Singh-Mankani points out that in this

part of the world it is not common for children and teens

to receive money for odd jobs which actually helps youth to

establish the value of money.

Start

According to Singh-Mankani, until

about age 5 to 7, money is a very

abstract concept for children. “It

is viewed as a tool rather than a

symbol; somewhere around this

time it is useful to start having

conversations with children

about how much something costs

by engaging them in practical

exercises,” she tells. “For example,

at the supermarket checkout

desk you can have them pay for

an item and count the money as

they pay.” She suggests doing this

with different items and then start

asking if they can guess how much

something costs while you are

buying it.

Teenagers

The big question; is it too late to

instill the value of money in a

teen who has an annoying habit

of asking for money all the time?

Singh-Mankani emphasizes that it

is never too late, but adds that the

longer you wait, the longer it will

take to create the shift. She advises

to start by introducing the idea

as a developmental progression

by identifying it as the next step

towards adulthood. “Without these

concepts it will be

very difficult to manage

money, which is a relatively

fixed resource, leading to

frustration and distress,”

she explains. Some tips she

advises include: Start with

smaller chores and build up

to more significant ones. You

may face some resistance to

this but try to liken it to a job

and they may be more open

to follow the plan. Parents

can use personal examples

from your own life, such as

how much you budget for

various expenses and what

you do when you exceed this

budget.

The Best Ways to Instill the Value of Money in Your Child

• Do the following exercise with your child: Make a list of needs and wants and discuss these items in detail. This

can turn in to a debate, so keep it light and fun!

• When you are looking to purchase an item of significant value play the ‘deal game’ where the person who finds

the best deal gets a prize, or bonus pocket money.

• Acknowledge the conflict many of us feel when we really want something but can’t have it, or know that it is better

to wait. The only way to get through this is to recognise the reward that comes from saving, and watching your

savings grow.

• Start to talk about how the banking system works including credit, debit, and most importantly, the debt trap.

Discuss interest rates and how they work. Use numbers to demonstrate these concepts. This usually works well

with older teenagers.

“These skills

have to be trained

consistently for them

to develop and this

usually happens over

the period of a few

years.”

Sep/Oct 2015