MONEY is such an integral part of our lives, yet it is often misunderstood. misused and mismanaged. One of the reasons some adults find it hard to make the most of their money is that they never learned good financial practices at an early age.

If you are a parent or have the responsibility of teaching children, then one of the most important things you can do for their development is to help them appreciate money and finances when they are young. One way to do this is to incorporate money lessons into their everyday activities.

Money will be less of a mystery to children when they see it being smartly utilised in their real-life experiences on a regular basis. Here are some simple ideas on how you can help your kids to understand money and give them a head start on becoming financially well-adjusted adults.

MAKE HISTORY AND GEOGRAPHY COME ALIVE

The artwork found on Jamaican money can provide you with opportunities to teach facts about local history and geography. On one side of the coins you can distinguish our country’s coat of arms, which you can use to share information on our original inhabitants, the Tainos, and our motto.

All our bank notes feature national heroes or past prime ministers of the country; you can use the Internet to help you find stories about these historical figures. Also found on the paper bills are tourist attractions, national monuments, infrastructure and Jamaican flora and fauna.

Younger children can use tracing paper to make impressions of the coins, or you can give them pictures of the images to colour. For older children, create Jeopardy-type quizzes testing them on details of our currency, or give them questions so that they can search online for the answers.

MAKE SHOPPING A MATH EXPEDITION

As soon as your children are old enough to recognise different units of currency, allow them to get involved in the process of buying goods at the store. Supermarket trips can provide you with several occasions to reinforce their mathematics skills in entertaining and practical ways.

When looking at price tags, ask your children to round figures to the nearest 10 or 100, and let them try to estimate the total cost of the goods in the trolley. Bring along a calculator for them to multiply to find the price of several items of one product, or divide to get the unit cost per kilogram or litre.

You can also allow your children to create their own shopping lists for the items that they would normally consume, and to keep a running tally of the prices of all their selections in the store. Give them some money for their purchases and let them pay the cashier and collect their change.

MAKE SAVINGS INTO A CHALLENGE

One of the greatest money skills you can teach your children from an early age is how to save consistently. With today’s heavy focus on consumerism, many children will grow up mimicking adults who choose to spend money for instant gratification instead of saving for future rewards.

It’s important for your kids to see how delaying their desires can eventually lead them to acquire more substantial benefits. Provide younger children with piggy banks to put aside coins, and add ‘interest’ to their monthly savings efforts so that they can get an immediate return on their efforts.

Give your older children reasons to save by creating challenges and targets. If they want toys or gadgets, tell them to save up a portion of the cost, and offer to match their contributions. Teach them about the power of compound interest and how small sums can grow significantly over time.

MAKE BUDGETING A WAY OF LIFE

Another crucial money lesson to impart to your children is how to budget for their spending needs. Many adults avoid budgeting because they find it tedious and frustrating, so you can help your children to develop good budgeting habits by making it a part of their regular routine.

You can start by sharing details of the family budget with your children, so that they can see that you have to make choices with your money every month. Let them understand why you need to put aside funds towards upcoming events such as birthdays or expenses such as school fees.

Help children to create their own budgets to plan effectively for their expenses and desired purchases. They can trim their lunch or mobile phone spending to put aside money for movies, gifts or trips. This will give them a sense of control over the decisions they make with money.

Ultimately, the best financial lesson you can give your children will come from your own relationship with money. If they see you making wise spending decisions, achieving your savings goals, and setting aside funds for your family’s future, then they will be more likely to follow in your footsteps.

Cherryl is a money coach, business mentor, and founder of Financially S.M.A.R.T. Services. Her upcoming book, “The 3 Ms of Money” will reveal all the secrets she learned about financial success. Get more advice on money and business matters at www.financiallysmartadvice.com and www.entrepreneursinjamaica.com.

E-mail comments to cherryl@financiallysmartonline.com.