young boy with coins
Parenting

9 Simple Ways to Teach Your Kids About Money

Money makes the world go around. We spend it on food, clothing, entertainment, and ensuring that we have a place to live. It can also be utilized to aid others by making charitable donations or assisting a close friend or family member. How can you teach your children the value of money though at a young age?

How do you teach a child to handle money? There is a good chance that you have been handling money for your entire life, but as you open your wallet now, where is the money? Like the rest of America you have probably gone ‘cashless’, so to speak, meaning you no longer rely on paper and coin, but rather the amount of money that is currently in your bank account.

This might be find for you, as an adult, but when you are thinking about children, you may realize that they need something a bit more tangible, and with that being the case, it might be time to resort to some new(or old) measure to teach your kids about money. Let’s take a look at nine great ways to teach them about the currency they’ll be using every day for the rest of their lives.

1. Tangible Assets: Let them See the Money

girl with coins in hand

As we mentioned earlier that you have probably stopped using paper money, but in order to give your children a sense of what money is, you actually need to let them handle it. For this reason, you might want to look into play money which is available at almost any educational store. Plastic coins and realistic looking paper money will allow them to get a handle on what the world of currency is actually like.

2. Explain them You Earn Money by Working

The first step in talking to your child about money is to help him or her realize that food, clothes, toys and everything else doesn’t just fall out of the sky. You have to pay for them.

My friend recently learned that her kids believed vending machines gave money on demand. That would be wonderful, wouldn’t it? Unfortunately, it is necessary to work to earn more money. And you’ll have to work harder than anyone else to get rich and buy everything you want.

It’s important to teach your child not only what money is, but also where it comes from. You don’t want your child to believe that money is given by a magical machine or that money is grown on a tree! Explain to your child that working hard is the only way to make money.

3. Show Them How to Spend Money Wisely

This is probably one of the most difficult lessons of all to teach children about money. Do they spend their money today to get a candy bar in the morning, or wait till lunch to get it and enjoy it? Teach your children the consequences of making impulse buys versus waiting it out and thinking about the item their buying.

Do they really need that candy bar now? What are the downsides to having it at breakfast when they’re already full versus being able to enjoy it during lunch? It will take a long time for children to grasp, but will teach them to think critically about how they’re spending their money.

4. Teach Them How to Save

mom and daughter with a piggy bank

Saving money has a lot of benefits. It can be hard to get this across to your child. Try to show them how by saving money they can get something they really want at a later date. You can even take your children to the store and give them a small amount of real money to either purchase a toy or to save it for later.

Each time you go to the store keep giving your child maybe a dollar or two and watch them debate about their decision. Another great way to do this is to get them a piggy bank and let them watch their money grow. It gives them something to physically see as their money slowly increases over time.

5. Make it fun

To help your child learn to manage a budget, you need to put things into practice. For example, you can make him buy his snack every day at the end of the school day, by assigning at the beginning of the week an amount that he should not exceed, and by giving it to him.

After you have detailed the prices of the possible options, you can explain to him that there are several solutions: buy something at the same price every day, save money the first four days and treat yourself the last, or don’t buy too expensive things all week and keep the remaining amount at the end to put in his piggy bank and thus save money.

Read also: How To Get Your Kids Excited to Learn

6. Set Budgets

Maybe kids don’t necessarily need to worry about budgets, but it can’t hurt to start early. Create a chart, or perhaps a goal sheet to show them what they are saving for. There is nothing quite like giving them a goal and letting them work toward it.

7. Bank Accounts

A great way to teach your children the value of money and how it works in our society is to allow them to open bank accounts with the money they earn or you give them. Many banks actually incentive programs for younger customers, so keep an eye out for that.

8. Play Monopoly Money Game at Home

Open your own “store” in the comfort of your own home! Give your children monopoly money, but only a set amount. Or any play money you can get from the store. Then have some snacks or small toys your children can buy with their play money at home. Have different set prices for each item and let your children make their own financial decisions.

It’s a great way to introduce them to spending money for an item they want now, or to wait a while and save to get an item they really want for the future. Since it’s in a controlled environment you’ll also be able to monitor and give them some advice. It’s also fun for both parents and kids alike.

9. Teach them About the Check

Checks might be part of a bygone era, but keeping track of how much money you have spent is still important. Teach your children how to keep track using a check register!

Conclusion

Teaching your children the value of money can be frustrating and confusing at times. Children can have a hard time grasping the concepts behind how money works. However, with a lot of time and persistence it is possible to show them the true value lying in it.

AboutKara

I’m a writer, new mom and foodie. I love sharing what I know while making others feel beautiful. On this blog, I share my healthy lifestyle, simple meals, fitness tips and experiences.

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