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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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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!

Modoras Pty Ltd ABN 86068034908 AFS License No. 233209. This article contains general advice information only and is not intended to represent specific personal advice. No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional financial advice before making any financial investment decision.
  • it is a great thing and very important to teach kids about money management and getting them excited to save money

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  • My kids were very industrious and used to draw paintings and then sell them to the neighbors for 20cents…lol
    Or they would trash my kitchen by making muffins and then sell them to neighbours….
    I remember once telling them to go to a certain neighbour and once they had left I phoned her and asked her if she could buy all their muffins and I would pay her back the following day. She did but then refused to take money of me as she said the muffins were amazing… LOL

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  • Really good knowledge to know! Thanks for sharing this!

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  • Thanks again for sharing; we have set up some savings goals.

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  • I love the idea of the Money Savvy piggy bank. Thanks for featuring that!

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  • As much as I want my kids to save without having to use their money that ive taught them to sell their unwanted toys to save up or buy their choice of a toy. Ive decided to open a different bank account where they wil not know about until they are 21 yrs of age so they can buy a house or car wisely. They do have their own bank account which I show them their savings.turned out showing them their own savings encourage them to save more by competing each other which that has came naturally themselves. Told them they both had $200 ech. My daughter youngest is now $25 more infront Of my son.

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  • Love the ideas and tips you have given here, the piggy bank sounds like a super idea

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  • Interesting article and tips. I love the piggy bank tip with different slots for spending, saving, donating and investing.

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  • I’ve seen those piggy banks and I think it’s a cool idea and love the rest of the tips here too, thanks.

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  • Most kids have a piggy bank and they do enjoy saving and counting their coins over and over again LOL. My son try’s to take all the loose coins he finds all over the house – cheeky bugger is going to be richer than me soon.

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  • I really like these tips. When my little one gets a bit older, I will definitely be teaching him the value of stuff and how important saving is.

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  • At 2 1/2 years old we taught my niece that anything you buy has to be paid for. We spoke the lady at the coiunter and explained that my niece had to give her part of the money and Mum gave her the rest of the money to buy a pillow she wanted.
    Another child aged 7 years complained to that her parents hadn’t bought her something she wanted. I explained to her that they had to earn and save the money to pay for it first, that they had just built a new (basic) house. As I wasn’t successful in making her understand that the house hadn’t been completely paid for I passed that chore onto her parents. It’s not just the bulding itself it meant more furniture to replace old which was falling apart and the yard has to be fixed – it is clay soil – slippery when wet. The kids have money boxes. The 7 year old has to earn her pocket money. The younger one is too young and tiny to help apart from “put” his unbreakable plates etc, in the sink –or close the cupboard doors while we are still putting things away in them.

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  • I think starting young gives them so much more, kids seem to think that money just gets in your purse and it is a never ending supply

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  • Great ideas. I like the idea of a see through money box with different slots for different savings. I was always taught spend some and save some.

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  • this is brilliant, making it fun early on ma.kes one massive difference,, like the bit about donate as well….so important

    Reply

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