What’s the easiest way to teach a kid about Money?

Before we get into the details of the topics, do we really need to teach a kid about Money? It depends totally on you. To quote Einstein: ‘If you can’t explain it to a six-year-old, you probably don’t understand it yourself. ‘

As we figured out one of most valuable psychology principle in the book Influence is Scarcity. Scarcity teaches the difference between desires and necessity. But how scarcity teaches us. We learn the value of a thing when we don’t have or when we lost it. We don’t value things that we easily have, including money. If a kid is free to buy how many toys it needs, why there will be value for money. The right time to teach is at the beginning. Later it will be tough to change the habits.

If a kid is restricted to limited amount say 100 bucks. It will only buy the necessity things it wants to buy. Limitless and freemium isn’t good for us, pollution is a great example on that front. Hard limit is good for us, especially when it’s time and money. When we gain things after putting on huge efforts we care about those things preciously but the things that we get in free aren’t cared. Further the precious things in life can’t bought through money especially time 😀