Today we have a guest poster sharing effective ways to teach kids about money – welcome to Olfa from Our Family World!
Grown-ups and parents often tend to think that kids don’t understand money or have little interest in those coins. But they couldn’t be more wrong. The kids of today know exactly what those dollars mean and their value. This is good in a way, as the parents can start teaching their kids about money at an early age. And the sooner they develop some good financial habits in them and learn the value of money, the better it will be for them. Those early lessons of money will stay with them for life and they will grow as adults with some good and sound financial habits.
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Begin the conversation
Start talking about money even before they’re in school. After all, they see you using dollars and cents and would love to know more. Explain in simple terms about the value of money and how it is used.
Teach via everyday activities
Give them money to do some shopping at the grocery store. This will teach them that some things are more expensive as compared to others. This will also give them confidence about handling money.
Give them pocket-money
Give them a little weekly allowance and encourage them to save. This will get them in the habit of saving at an early age and they will benefit as they grow into adults.
Encourage them to work for money
If you have teenagers in your home, you should encourage them to work and earn their own pocket-money. They will respect the money they earn and spend it wisely. This is a great learning experience for them.
Build a budget
You can encourage them to set a budget for their shopping, gifts and entertainment. They will learn how to manage the funds within their budget and how to wait, learn to save and spend the money at the right time.
Open an account for them
Older kids can have their own savings account. This will help them learn about maintenance, the fees involved and the interest they earn. Many banks have special savings accounts for children and students.
These are just a few simple and effective ways to teach your kid about money and savings, right from an early age. You can give them an incentive for making good savings. Taking these steps early will ensure that your child will grow into an adult who will know how to handle their finances in a healthy way.
About the author
Olfa is the founder of OurFamilyWorld: an online publication for busy parents where she shares wholesome recipes, ways to save money as well as her motherhood journey.
Alison says
Such a good topic!!! Something I struggle with be consistent with my kids on
2Wired2Tired (@2Wired2Tired) says
Love these tips. We just opened an account for each of our children and they are so excited about it!
Olfa says
Congrats! They must be excited!
Amanda @ The Frugal Greenish Mama says
Great tips and reminders! I think it is so important to teach your children very young about the concept of money and that everything has a cost.
Olfa says
Yes it is! I think it is as important as teaching them how to brush teeth.
margsworld says
These are good and I have passed this on to my daughter to teach to my grandkids.
Olfa says
That’s great!!
Emily says
Great tips! Teaching about money is so important – I have friends who were clueless after college ended.
Olfa says
That’s sad! But hopefully they will learn soon.
nshstheatre says
Olfa: Thanks for the great tips. I especially resonated with opening an account with one’s child. We are planning to do this during the summer.
In addition, I think it’s important that kids work for things they would like. My daughter saved up for a pair of boots we researched on line. We comparison shopped and tried on boots locally but found the best deal was actually online. It was a real delight watching her open them, try them on and wear them to school the next day. She knows the value of those boots!
I look forward to more tips in this financial literacy series.
Olfa says
We opened an account for my son when he was 6 years-old. They had a nice program at at school: the bank came to school and opened an account. Then once a month they sent deposit forms and accepted all coins from children! So it was an incentive for him and us to save money. Great for the boots. They need to know the value and know that money doesn’t grow in trees.
Michell says
Great tips!! It is so important to teach them now, as our children will be our future leaders. If they don’t know how to manage their own finances, they’ll be unable to run businesses, run the government, etc. Thanks for sharing!
Olfa says
You are welcome Michell. True if we teach them at an early they will be able to run a business and manage their finances properly
Katherine G says
These are awesome tips!!!
Olfa says
Thank you Katherine