Kids are taught many life skills early in life like using manners, cleaning up after oneself, and following directions. However, there are other critical skills such as money management that often gets overlooked. By the age of 3, children can understand the basic concepts of money. Research shows that by the age of 7, their money habits are set. It is important that we get our kids started off on the right foot for financial success in adulthood. Here are 9 Genius Ways To Start Teaching Your Kids About Money.
Use A Piggy Bank
Give your child a piggy bank for them to store their money in. Encourage children to "feed" the piggy by placing their money inside this bank. Explain to them that the more they feed the piggy, the happier he/she is.
When your child completes all their chores for the week or does something worthy of a reward, you can give them an allowance. It doesn't have to be much, but it is a little something extra they can add to their savings. This method is also a great way to introduce them to the concept of working a job.
(photo: Becca McHaffie)
Take your child shopping with you. Make out a list beforehand, set a budget, and allow them to help you gather everything on your list. Through shopping, children can learn how to operate within a predetermined spending plan while checking off everything on the list. It is even better if they can help you do some couponing before embarking on your shopping trip.
Open A Savings Account
Open a savings account for your child at a local credit union or bank. Do a bit of shopping around, and see which bank has the greatest perks before committing to it. Once the account is open, have your child bring their stuffed piggy banks in to transfer into the account. Not only will they earn interest on their savings over time, but they can also get used to the process of working with banks.
Have A Penny Savings Challenge
Try the Penny Savings Challenge with your kids. On Day 1, you add one penny to your jar. On Day 2, you will add two pennies to your jar, etc. You can continue this for a full 365 days (yielding about $668!) or for however long you choose.
(photo: Michael Longmire)
Create Coin Jars
Create jars for extra pennies, nickels, dimes, and quarters you find. It'll be interesting to see how quickly these jars fill up with loose change. Once they are full, you can deposit the savings into the bank, and repeat the process.
(photo: Randy Fath)
Play Board Games That Use Play Money
Board games that use play money like Monopoly, Life, and The Allowance Game are a really fun way to teach kids about the concept of money (while sneaking in a family game night.)
Start A Coin Drive For A Charity
Start your own coin drive for a charity. You can talk to your neighbors, family, and friends about your drive, and encourage them to donate their loose change. This activity is also a really great way to teach your children the correlation between giving and receiving.
Start A Summer Business
The summer is a really great time to let your child unleash their inner entrepreneur. You can start a lemonade stand, have a bake sale, offer to care for your neighbor's garden, etc. The possibilities are truly endless. By the end of the summer, children will have acquired valuable business skills in addition to a nice little saving.
Using these carefully calculated ideas, your kids will learn more about earning and managing money in a fun way. Your children can form good money habits they can carry all the way into adulthood. They will be more than grateful to have acquired this knowledge before stepping out into the world.