Teaching Children About Money and Finance
It’s never too early to start teaching children about money and finance, but what is the best way to model and teach important financial principles? If you have ever asked “How can I teach kids about money and finance?” here are a few ideas to help you get started helping your children learn about budgeting, saving, and making good spending choices.
Money Awareness for Ages 0 to 10
It’s never early to start building your child’s awareness about how to use money well. When they are very small, it can be a great educational activity to begin learning the names of coins, and how much they are worth. Saving money in a clear jar when allowances begin can also help kids get an idea of what saving money looks like. Playing games like ‘store’ or ‘restaurant’ and using fake money to ‘buy’ things can be a great way to teach real world principles. Also taking your child to the actual store and allowing them to handle the coupons or compare prices can make financial questions into something relevant to them.
Financial Planning for Teenagers
Teenagers are mentally capable of handling much more when it comes to money. Allowing them to earn money with chores, and then save that in a bank account can be a good way to start them on the way to good financial habits. You can also start exploring the stock market with your child by choosing a stock and watching whether it rises or falls from week to week. It can also be valuable to start showing your child the value of giving to charity at this point, because that can help teach responsibility and community awareness as well as financial savvy.