Welcome back to part 4 of how to raise a money savvy kid! In part 3, we talked about real life opportunities to teach kids about money. This week, we’re going to cover 5 ways to teach kids about money and believe me, this needs to be fun. I remember when my mom tried to instill this valuable lesson on me. I had a special bank where I put my allowance and eventually, I had my own savings account. Had I been smarter I would have kept adding to that savings account, but alas, I did not. And have I ever mentioned that my mom used to work at a bank? Or that she has taught business law? Yup. I really should have paid more attention.
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Parents can talk and talk about money and children will only retain part of what you say. To back up the really important lessons and conversations you want to teach your child through your actions.
It’s also often useful if the information is experienced or comes from another source. The following tools will help you teach your child about money.
5 Ways to Teach Your Kids About Money
1. Piggy bank – The piggy bank is likely a child’s first introduction to saving money. However, simply plunking pennies into the bank doesn’t accomplish much. Consider helping your child set a savings goal. For example, maybe they can save for a trip to the toy store.
2. Allowance – If you choose to give your child an allowance, this is the perfect opportunity to teach about saving, spending, and donating. You can require your child to work for their allowance, give them a predetermined amount of money each week or month (which teaches them to budget their money) or a combination of both.
3. Books – There are a number of books for young children. One book, titled Money Mama & The Three Little Pigs by Lori Mackey, teaches the basics of money and has a positive approach.
4. Videos – Young children love to watch videos and Sesame Street has “For Me, For You, For Later,” a fun video about saving, donating, and spending money.
5. Games – Finally, you can find great online games, mobile applications and websites dedicated to teaching kids about money. Buy it Right is a board game by Learning Resources that takes players on a shopping trip and helps them learn about saving money.
Games, books, and other tools help you reinforce the message that you want to teach your child about money. They also make it possible to introduce the topic of money to even very young children.
I had one of the Fisher Price cash registers growing up (the classic one, you know?) and that was a great way to use pretend play to learn about money.
What do you use to teach your kids about money?