3 Simple Ways to Teach Kids About Money

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One of the things that’s usually overlooked when raising our children is teaching them the importance and value of money. I don’t remember being taught how to handle money so perhaps this is the reason that manage finances has been one of my biggest challenges as an adult.

Over the years, I have learned how to manage finances but not without costly mistakes along the way. Now I want to raise my kids differently when it comes to the topic of finances and here are some of the things that my husband and I have implemented in our household.

1. Discuss the importance and uses of money

Most of the time, kids think of money as something they can use to purchase toys, clothes, and kiddie activities. So what they know about money only revolves around how they are spent.

It is very important they we also teach our children how money is circulated and how they end up in our pockets. Teach them about savings, inflation, and investments. Of course we teach them manners that is appropriate for their age. For school-aged kids, you can make use of free online resources as a supplement to their learnings.

The good thing is that in today’s technology, there are online tools that are fun, engaging, and teaches kids the value of money and how to manage it well. One example is the free money game from mortgagecalculator.org called Coffee Shop.

This game teaches kids the different aspects of running your own business. They learn about inventory, strategies, pricing, demand, and listening to customer feedback.

While they are enjoying playing the game, they learn that it is not easy to earn money and so they learn to value it more.

In addition, they learn general ideas on how to run a business. Something that they can greatly benefit from when they grow up.

2. Include them when doing the budget

Kids who have a better understanding of how money revolves within the household will understand when we tell them we can’t buy certain toys or gadgets. Kids have the tendency to throw tantrums or feel bad when we say no to their requests for new toys. But when they have a general idea on where the money goes, they tend to be more mindful about asking for “wants.”

Make sure to sit them down with you when doing your weekly or monthly budget. Not only are you setting a good example when it comes to financial management, this can be a great bonding activity for the entire family.

3. Teach them to be resourceful.

When kids ask for new clothes, we can show them how we can alter old clothes to give them new style. You can also teach them that buying from thrift shops is lighter on the budget and better for mother earth. Teaching kids the importance of reducing carbon footprint, helps instill consciousness regarding fast fashion, and the amount of plastic going to the landfill. This ultimately helps them be more mindful about what they are spending on.

Photo by Julia M Cameron from Pexels: https://www.pexels.com/photo/photo-of-woman-and-boy-looking-at-imac-4145347/

Raising financial literacy to kids may sound daunting and hard to do. And it can be! Especially if we as parents also do not know what we are doing. However, it is our responsibility to teach them money matters as early as possible because their financial future depends on what they learn today.