6 Ways to Teach Kids about Money
Pretty much every parent ends up having to teach their children about money eventually, but few embrace the idea. Why would they? Kids understand money only to the point that it benefits them and it goes through their tiny little hands like a sieve. Come to think of it, I guess that is pretty much how the majority of our society looks at it too but I digress. The bottom line is to teach kids about money, you have to add in some fun. Nothing else will hold their attention long enough to make the principles stick.
We have talked about ways to teach children about money in the past, but here are 6 more ways to get started:
Give them a job - Okay...so we all do that. We all give our kids a task to do and file it under “doing their part” around the house. That is all fine and good, but you would serve them better to set up some type of payment system for certain jobs. This gives you the chance to teach them about working under direction and getting paid (or not) for a job well done.
Take them to the bank - Seeing the bank in person is a big deal to a young kid that is starting to think for themselves. Opening an account in your kid’s name is a huge deal as well. Give them the chance to visit regular and make “deposits” from their allowance and savings. Never underestimate the power of letting them feel like a big shot.
Start a tiny business - Every kid has some kind of marketable talent even if it might just be farting the alphabet on command. Let your kids market something they find fun such as a lemonade stand, drawings, crafts, etc. If nothing else, teach them to market their skills...mow a lawn, rake some leaves..you get the point!
Have them budget their vacation money - Kids relate very well to things that will be coming up soon. Long term goals are great but your kid is not nearly as likely to stick with them. A short term goal such as the beach trip planned for next month is another story. They will gladly sit down and discuss the way they want to spend their funds. Show them how to set aside money for each thing they want to do, but let them do the work.
Teach them the cycle of production - Basics are the key here, but the way something is ultimately sold is a great learning tool. I like to use a specific toy that they love to do this. Simply break down the parts that is needed to build the toy and explain how it is constructed with parts that have to be paid for. Then you have to pay for labor, pay to have it advertised and ultimately sold on the shelves at the toy store. Explain how this determines the price of something.
What other ideas can you share to to teach your kids about money and help them along the way?
