The Unexpected Way To Teach Kids The Value Of Money

Tuesday, 23 July 2024, 5:37 pm
Press Release: New Zealand Gold Merchants

The way that children learn about, and experience money has changed significantly since many of us were kids. In the digital age, physical currency is being used less and less, and for many children nowadays, money is seen as something that lives on the computer or in a card from the bank. 

That’s why gold can be a great tool to help teach the next generation about the value of money and start their financial education off strong. Here are a few ways in which using a tangible asset like gold can help to bring to life abstract financial concepts and make learning easier and a lot more fun.

TEACHING THE VALUE OF MONEY

Remember having a piggy bank as a kid? Along with being a treasured keepsake, these piggy banks helped many of us to shape our understanding around money and its value. For many of us, piggy banks were our first introduction to saving. We learned the tangible value of money this way and all the possibilities we could get by saving up our coins. Gold is another way to give kids an understanding of value and how you’re using it to build your own golden nest egg for the future. Giving them something they can hold and interact with really brings the idea of money and value to life for kids.

DISCOVERING THE HISTORY OF GOLD

Gold has a very interesting history that kids find fascinating. A great way for children to learn about the value of gold is to share how it has been used and traded across the world throughout history. From ancient Egyptian artifacts, through to the Otago Gold Rush right here in New Zealand, there’s plenty of fascinating stories to share and learn from.

LEARNING HOW GOLD IS MINED

By showing children how gold is mined, refined and used, you can help them understand why it’s such a valuable asset. You can even take them on a guided tour of a real-life gold mine, where they can get up close and see how gold is extracted from quartz rock and turned into bars of bullion. As well as being a great learning experience, it’s also a fantastic family adventure they’ll love.

HOW VALUE CAN BE CREATED OVER TIME

Gold is a great way to show kids how the value of something can change over time. The bar of gold they’re holding may be worth twice the amount than when it was first bought! Take a look at the graph below showing how the value of gold has increased over time and why it’s been a reliable investment for the last 20 years.

SHOW HOW IT’S PROVIDED A SAFETY NET

Because gold is a finite resource, it can hold its value even during times of economic uncertainty. A great example to share is how during the COVID pandemic the value of gold shot up, and also increased again during the recent economic downturn. Introducing children to gold buying can help them understand risk management and manage financial storms that will inevitably occur over their lifetime.

ENCOURAGING FINANCIAL RESPONSIBILITY

Gold is also a great way to show how creating value takes patience and discipline. By explaining that gold is a long-term investment, you can help children understand the importance of saving and investing their money wisely. By teaching the concept of financial responsibility early on, you’ll be setting them up for a more profitable future.

PROVIDING THEM WITH OPPORTUNITIES FOR THE FUTURE

Investing in your financial future is important, but for many young people, buying a home may not seem like a viable option. However, that doesn’t mean that they can’t start building their financial security. Gold is an excellent investment for those who don’t have the means to purchase property right away. By saving and investing in gold from a young age, you are giving yourself options for the future. You could hold onto your gold for years, eventually selling it to put towards a home deposit.

HOW STARTING SMALL CAN LEAD TO BIG THINGS

The earlier you start buying gold, the better, and the great thing about bullion is that there are many different options. You don’t need thousands of dollars to get started. There are plenty of more affordable options, such as silver coins, which you can use to get your child’s savings started.

By investing in precious metals early on, children can start building their own portfolio of assets that will continue to appreciate in value over time. With the right education and guidance, children can learn how to use gold and other tangible assets to protect against inflation and other economic factors.

Teaching children about money is more important than ever before in today’s digital age. By introducing them to gold as a store of wealth, we can help them understand the true value of money and learn how to manage their finances better. By explaining the value of gold, encouraging financial responsibility and helping them build wealth, we can set children up for success in the future. Ultimately, teaching children about gold is a great way to invest in their financial education and set them up for a bright financial future.

Buying bullion, specifically gold, may not be as common as buying a property, but have you ever considered why that is? Perhaps as parents, we need to be more proactive in explaining the value of gold as a store of wealth.

ABOUT NEW ZEALAND GOLD MERCHANTS

There’s a lot to love about the original currency of gold, and Managing Director Tony Coleman for one is an advocate. He’s been buying, refining and selling gold since 1985, and opened the retail offering in 2006, so he knows what he’s talking about. His team at NZ Gold Merchants have ridden the highs and lows of many economic cycles and they’ve witnessed first-hand the powerful role gold – and other precious metals – can play in wealth protection and growth. “We never say people should put all their money into gold – but it should be part of your investment portfolio. Financial history proves that gold protects your wealth from big downturns, and we consider it the ultimate insurance in a financial portfolio.”

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