It’s important to teach kids about taking responsibility. We can teach our kids early on about how to manage money. The sooner they start, the more they’ll have! Even as young as 5 is not too early. And keep them engaged by making it fun.
Here are a few fun ways to teach kids about money at any age:
- Shop at Weekend Farmer’s Markets
Taking kids to a farmers’ market is a great way to help them teach them the connection between work and money as they can see actual farmers sell their items. Let your child be as involved as possible.
Take a list and cross it off. Work with a budget using cash so they can see the physical exchange of cash. As he/she helps you choose a bunch of apples and hands the cash to the farmer, he/ she will get to see the market economy in action.
Make it fun and explain that the farmer grew the apples himself, so he gets to decide how much they cost – and the buyers/customer then decide if they want to pay that amount.
Go the next level and even explain that with the money the farmer earns, he can buy supplies to grow more apples.
- Give them a piggy bank… with a twist!
Instead of the old-fashioned piggy banks we’re all used to why not try a more novel version and provide your child with The Money Savvy Piggy Bank! The Money Savvy Pig developed by Susan Beacham is a transparent plastic piggy bank divided into different sections based on how savers want to use their money. There’s a slot for Save, a slot for Spend, one for Donate, and another for Invest.
It’s a simple tweak on a classic idea, but the lesson is a good one — money should be targeted for a specific purpose at the time and successful money management is always driven by some sort of budgeting process.
Further, it lets young savers see their money accumulate in each area and better understand the earning / saving / spending / depletion cycle.
- Encourage them to give back
In addition to having your child donate money (to a charity of their choice), make charity more enjoyable by getting the whole family involved. Volunteer together at the local food bank or participate in a fundraiser at the neighborhood park.
You can also match your child’s interests with great causes – if he’s an animal lover, buy supplies from the RSPCA animal shelter or volunteer together to help feed the animals.
- Set a family savings goal
Is your child fixated in getting the latest PlayStation? Does he/she want to have a new scooter? Or is he/she dying to meet their Disney heroes and wants to go to Disneyland?
Agree on a long-term goal and start a fund in a jar. This way you are helping your child reach his/her goals and together, you all work as a team. Your children can help deposit your loose change in the savings pot. You can even encourage them to contribute part of their allowance from time to time.
- Encourage your child to make a little money
Earning money is not only educational but empowering and encouraging for children. You can inspire your kids to sell their outgrown toys and clothes at a flea market, helping to host a family garage sale, and doing chores above and beyond the usual around the house for extra pocket money.
These are just a few fun ways to teach your little ones about money. Do you have your own ways of teaching your kids about money? Share with us on the comments below!