Teaching Your Children About Money

Teaching your children about money ensures that your children grow up with sound financial knowledge and good financial habits. This can help ensure that your children don’t grow up to become dependant on credit cards, unsecured loans, and payday loans as adults. Good financial health is important and teaching your children good financial habits now sets them up for good financial health down the line.

As soon as your children are old enough, buy them a piggy bank. Show your children the pleasures of saving to ensure that they become savers for life. Contact your bank to find out what type of children’s savings banks are available and sign your child up for a bank account as soon as possible. Having your child save a small amount each month can add up by the time they reach college age. As well, speak to your bank about children’s education programs. Many banks have booklets and even school programs for children to teach children about money. Find out if a local bank or financial company visits schools in your area.

In addition to encouraging saving, it’s important to teach your children about spending wisely. Teach your children about budgeting by helping them make a list of their needs and wants. Explain the difference between needs and wants and how to prioritize spending. For example, food and shelter are needs while toys and video games are wants. Encourage your children to save up for their wants rather than using credit cards or loans.

Teaching your children about earning money is also important. Encourage them to find ways to earn money such as doing chores around the house or selling items they no longer need. Teach them about the value of hard work and the satisfaction of earning their own money.

It’s also important to teach your children about debt and interest. Explain to them that borrowing money comes with a cost and that they will have to pay back more than they borrowed due to interest. Teach them to be responsible borrowers and to avoid high-interest loans like payday loans.

Finally, lead by example. Children often learn best by watching and imitating their parents. Set a good example by being a responsible spender and saver. Involve your children in your own financial decisions and explain the reasoning behind them.

Teaching your children about money is an ongoing process. As your children grow older, they will encounter new financial challenges such as managing credit cards and paying off student loans. By starting early and providing a solid foundation, you can help ensure that your children have the knowledge and skills they need to make good financial decisions throughout their lives.…

Money Teaching

Fun and Games for Teaching Children about Money

Teaching your children about money is often much easier if it is fun and games rather than schoolroom learning. Here are a few fun games you can play with children to teach them about money. Fake investing. Teach your children about the stock market and then pretend to “buy” a few shares in various companies. Check the newspaper each day or once a week to see how much your “investments” have decreased or increased. Keep track of your progress on a large poster in the kitchen.

Coin collecting. Coin collecting is lots of fun and lets your children learn about history (when they find old coins) and other cultures (when they find coins from other countries). Look through coin jars in your home to see what sorts of treasures you can find and help your child determine which coins are worth more due to their age.
Spotting counterfeits. Teach your child to spot counterfeits. Not only is it fun to spot differences in bills, but it is a practical skill for your children to have.

Museum visits. Call around to find out which museums in your area have kid-friendly fiscal exhibits. It’s a great way for your children to learn while also having a fun day out. Budgeting board game. Create a board game where players have to make financial decisions such as paying bills, buying groceries, and saving money for a goal. Each decision affects their budget and they have to make strategic choices to stay afloat. This game teaches children about budgeting and financial responsibility in a fun way.

Garage sale challenge. Have a garage sale where your children can sell their old toys and clothes. Encourage them to set prices and negotiate with customers. This game teaches children about entrepreneurship and the value of money. Savings jar. Give your child a clear jar and encourage them to save their spare change. Once the jar is full, take it to the bank together and deposit the money into a savings account. This game teaches children about the importance of saving and delayed gratification.…