Almost every parent wants (yes, almost; a few strange folks out there) for their children to grow up to be responsible individuals who understand the value of the things they have. And most parents understand that a substantial part of what they learn during their childhoods defines how they will grow up to behave as adults.
However, while it’s easy to understand what you’re supposed to teach your child, it’s often not as easy to actually see it through. Kids have this uncanny habit of always being, well…kids and that can complicate things.
This is especially true of matters that involve money, finance and other child proclaimed “boring” subjects. But don’t you worry. We hear you. And these subjects don’t have to be so drab if you address them in the right way.
So, if you want to know how to teach kids about money, here are a few ideas!
1. Let Them Learn Value
The true value of money can only be understood when you have to work for it. Now you don’t have to make your kid work for absolutely every penny, but you can definitely ask them to work for the things they truly want. Simple chores or errands work great for these kinds of lessons.
For example: If your child says he wants those new sneakers, maybe he can earn them instead. This will serve two purposes. For one, he’ll have to prove to you that he really wants them and that it’s not just another craze. For another, he will understand that money isn’t something that presents itself to you on a silver platter.
2. Let Them Experience the Perks of Saving
There are very few people who liked the idea of saving before they actually did it. It is instinctive for us to simply want to spend our money on every single thing we want or think we need. And your kids are no different.
This is why, if you really want your children to learn how to save up, you’re first going to have to sell them on the idea of saving.
Why should they save? How will it benefit them? It’s important for them to experience the benefit first hand, rather than just hearing it from you.
Let’s say your kid wants to buy an ice-cream, even though there’s dessert back home. Maybe you can explain that there is already dessert at home, and she can save her money for a day when there isn’t any.
Whichever route your child goes, there will be a learning experience at the end.
3. Learning to Prioritize
Kids (and adults) tend to have endless lists of things that they absolutely have to have. The next time your kid presents you with one of these lists, use it as an opportunity to teach them about money and budgeting.
While normally you might tend to give your kid some of what’s on this list based on what you think is necessary, maybe you could try switching it up a bit. Instead, you could try giving them the amount you’re willing to spend and asking them to buy what they can within that amount.
This not only teaches them to prioritize, but helps them identify the difference between wanting something and needing it.
4. Play a Game or Two
Now financial training doesn’t have to be super boring. Let’s face it, if your parents had sat you down as a child and begun explaining the nuances of money management you’d have dozed off immediately.
So how can you make money management fun, you ask?
There are tons of board games that function around the premise of spending, investing and saving money. Incorporating these games into your child’s life can be a fun way to get them excited about spending wisely.
5. Show Them That Actions Have Consequences
Just like it does wonders to let your kids experience the benefits of saving, it also works well to show them the consequences of not spending wisely. As parents, we sometimes feel like we need to have all our child’s actions under full control, but that mindset isn’t healthy nor realistic.
The most effective way for anyone to learn something is through experience. Of course, we should do all we can to guide them in the right path, but sometimes a negative experience or two can have an incredibly positive consequence in the long run.
6. The Joys of Giving
Teaching your kids about money should involve more than just saving up for oneself. Allowing your child to donate to a charitable cause or help out someone who really needs it is a great way to both, show your child the subjective value of money as well as teach them to be empathic towards the less fortunate.
7. A Transparent Money Bank
While pale pink, piggy banks might be the parental go-to, transparent jars might actually work way better. The fact that your child can see the money s/he is saving can be very encouraging.
The more you’ve collected, the more you want to collect! Additionally, you could also encourage keeping separate money jars – to save, spend and emergencies.
8. The Trick of the Trade
Teach them to be street smart! Help them understand marketing tricks and gimmicks that get you to spend more than you should. Teach them to do their research and how to find good coupon sites.
Sites like this page can help you save a lot!
You Really Want to Know How to Teach Kids About Money? Practice What You Preach!
Contrary to what you might think, kids, are actually very good at observing and emulating behaviors. If you’re a parent who’s often off splurging and spending at every second sale, odds are, your child is going to pick that up from you.
You could learn every theoretical technique on how to teach kids about money, the bottom line is, if you don’t practice these yourself, your child won’t either.
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