The concept of kids understanding the value of money and how to manage it well doesn’t happen until they work for money, meaning they earn money for a job they do. Where I’m from, people believe that kids shouldn’t be exposed to money or have jobs that pay them. They think a kid shouldn’t earn money for themselves until they have finished their educational career or reached a certain peak. This is an old mentality. It is believed, and also evident, that when you expose a secondary student (high school) to money, they might prioritize earning money over furthering their education. Many times, when people see someone who ended their educational career in secondary school working, they say they were exposed to money prematurely. The belief is that only education will make you successful in life. This mentality is gradually fading away now.
My thoughts on this are that there should be a certain time when a kid is exposed to money, but it shouldn’t interfere with their education. It should depend on the kid’s maturity. One major factor to consider is whether the kid understands the concept of earning money. Does the kid actually know what it takes to earn money? Understanding the difference between money earned (money worked for) and money given as a gift will help the kid manage money better. What one actually works for has more value to them than what is given as a gift. The energy and time put into earning money will make them value it more, as it represents their hard work. Once a kid understands this, they will understand how their parents deal with money, preparing them for reality.
Once a child understands the concept of earning money, they are mature enough to understand money management. Kids often think about getting what their friends have once they have money, buying material things, and so on. A child who can think beyond their personal needs and consider necessities before personal desires is mature enough to handle money and can be exposed to money regardless of age.
Another thing I’d like to add is that if you decide to expose a kid to money, don’t make them too comfortable by giving them money whenever they demand it. Let the kid earn their money and spend it. When they come demanding more money, don’t give it to them. Make them understand that in the real world, if you don’t spend what you earn wisely, nobody will help you. This will help the kid understand money management and the importance of spending wisely. There are many people these days who lavish money because they were not introduced to it correctly or were introduced to it prematurely, which doesn’t help them understand its value.
Thanks for Reading
Image 1 by Alexander Mils
Image 2 by Jp Valery
