I am a firm believer in the earlier the better when it comes to teaching children about money. Financial responsibility is something that is learned over time, and sometimes through difficult lessons. In today’s tough economy, we have to be very mindful about finances and careful to spend our money wisely. There are fun ways to teach kids about money, in a way that will have a lasting impact and help them become financially responsible adults.
Teaching Children About Money
For younger children start with the basics. Teach them to identify money and learn the value of bills and coins. Once these basics are established, you can move onto making change. The grocery store game is a fun way to teach this skill. Set up a grocery store in your home using items found in your kitchen and add price stickers or tags. Let your child go shopping and then pay for the items with either your spare coins or play money.
Understanding that things cost money is also an important lesson for younger children. Has there been a time when you told your child that you could not afford something, and they replied saying that you could just write a check for it or put it on your credit card? It’s important for kids to learn that credit cards and checks aren’t a free money. Teaching your child that everything from cable television to the dinner on the table costs money will give them a better appreciation and understanding for the value of money.
Grade school is the perfect time to start giving children an allowance for chores. It’s a great way for them to learn that money doesn’t grow on trees, instead is earned. Encourage your kids to save their allowance up for something special that they want.
For more ideas check out the article 12 Things I Want My Kids To Know About Money.