Money management is a vital life skill and it’s never too early to teach kids about finances. It’s important to teach your kids about the value of saving and spending money wisely since sadly money doesn’t grow on trees. Here are a few ways to help kids and teenagers learn about money:
- Piggy Bank. Use a clear jar or a piggy bank so your child can see the money starting to add up. Talk through the money amount with your child and how adding to it every day, week or month is a good idea.
- Costs of Toys. While kids love to get a new toy, most kids don’t know how much money they are. Allow them to use the money they have earned through allowance or through gifts to get a toy and help them understand wants vs. needs.
- Play Games. Make the topic of money more fun! Monopoly®, The Game of Life® and even coupon cutting can all be fun, but informational.
- Bank Account. After opening a Savings Account for your child, teach them the importance of good banking. Depositing birthday, holiday or money earned from a job all can be a beneficial way to build the account and help prioritize saving vs. spending.
- Credit Cards. Teach them about the pros and cons of credit cards and how fast things can add up. It’s important to explain that monitoring spending habits is very necessary. A great way to do this is text alerts! Each time their credit card is used, they can receive a transaction alert to help monitor their finances including fraudulent activity.
Teaching money to kids may not be one of the easiest topics, but it’s important they learn the value of money at an early age. Have other tips on teaching kids or teenagers on the importance of money? Share them below!