In this material world, you need to be smart when teaching kids about money. Explain the concept behind notes and coins with familiar activities. Use projects and educational trips to raise their financial awareness. Assign positive values to money, to foster a positive attitude towards it. This way, your kids can have a healthy relationship with money. So, make sure to be smart the next time your child asks you about money.
1. The Value of Saving
Teach your kids to value saving. The first step might be to open a kids’ savings account. It will give them their first sense of ownership, and boost their self-confidence. Teach them to store a bit of their allowance, and deposit it at the end of each month. Consistency with saving is important, so you might want to give them a goal. Explain how holiday sales work, and that you can get more for less. Saving for the right occasion teaches them to always search for a bargain. There is no better backup plan than saving money for a rainy day.
2. Raising Kids’ Financial Awareness
From an early age, begin explaining finances to your child. Give them different notes and coins to hold, to associate them with money. Explain how hard work is valued, and how you are paid for your job. Introduce your kids to math by teaching them to calculate with cool math games. Kid’s mathematics games are fun and interactive, so kids can foster positive feeling towards it. When they learn their basics, make the transition from numbers to money. Take them with you to the bank, and explain savings, deposits and accounts. By associating banks with “invisible money”, they will have a better understanding of it. Once you have raised their financial awareness, they will know that money doesn’t grow on trees.
3. A Taste of Money
Let your kids have a taste of money by giving them an allowance. A weekly or monthly allowance will teach them how to manage their budget. Give them a notebook where they can keep track of their earnings and spending. Give your kids a run for their money, and inspire entrepreneurship in them. Make a deal with them to do chores around the house, in exchange for a bonus on their allowance. They might go the extra mile, and start up their own financial venture. Kids can open a lemonade stand, or sell their old clothes and toys to get that extra cash. Inspiring those first business steps will allow them to be resourceful and turn their creativity into profit.
4. Waiting it out
Sit down with your child, and make a wishlist. Tell them to arrange the items by importance. Research the prices, and then tell them to wait it out. Teach them not to spend their money all at once. Being smart and waiting it out will let them buy what they truly want. Once the first item is checked off, they will be motivated to continue. Until then, teach them to split their budget into a saving and spending pile. Having money to spend will teach them to enjoy it. And when they wait for that sought after item, they will enjoy it even more.
5. How to Make the Best Buy
Take your kids with you when you do your shopping. They will learn about different shops and stores, and where to find their desired item. Ask them to help you with the shopping list by letting them calculate prices. Focus their attention on sales and discounts, to teach them how to make the best buy. Talk about how brands affect prices, and how they can save money with alternatives. Also, talk to your child about advertising, and make them aware of marketing tricks. Knowing to read between the lines, will aid them once they start buying on their own.
Once cash flows through their fingers, kids will learn how empowering it is. Still, you need to teach them the smart way of handling money. Learning to earn money through hard work will help them appreciate it more. They will value saving, enjoy spending, and have a healthy attitude towards money. And you will raise a financially savvy individual, who knows the value of every cent.
About the author:
Tracey Clayton is a full-time mom of three girls. She loves cooking, baking, sewing, spending quality time with her daughters and she’s passionate about writing. Her motto is: “Live the life you love, love the life you live.”