Parenting is sheer hard work. You are responsible for your kids until they hit 18. You have to teach them all the skills they will need to use throughout their lifetime. That, honestly, is no piece of cake.
The list doesn’t begin with problem-solving skills or decision-making skills and ends with communication skills. It extends far beyond. Teaching your kids financial lessons is as important as other things.
Many people wait until seven to teach their kids financial literacy. However, experts advise introducing money concepts to children at the age of six. Inculcating money values in children as young as six could be tricky since they get distracted easily.
Conversations surrounding money alone won’t help. You must get them involved in activities that involve spending and saving. In this article, we’ve rounded up some fun and creative ways that you can use to inculcate money values in your children.
#1 Involve Kids in Weekly Shopping
Children don’t learn by what you say; rather, they learn by hands-on experience. Involving your kids in weekly shopping is an excellent way to teach them about finances.
Sit down with your children and create a shopping list together. Explain to them to prioritize needs over wants. Teach them that needs involve the basics humans require, such as nourishing food and clothing, whereas wants include luxurious items like toys.
When you take a trip to Walmart or Target, give your children a budget and allow them to decide what to buy. Show them how to compare prices, look for discounts, and choose the best value for money. Discuss the difference between generic and branded items and why sometimes the former can be just as good.
Their involvement in weekly shopping will teach them about budgeting and cultivate smart shopping habits.
#2 Use Creative Role Playing Games
Creative role-playing games can make learning about finances fun, so use them.
Get a pretend-play mini supermarket set with play money and set it up. Give your child some play money and convince them to purchase goods that they think they need using them. This will help them understand the concepts of earning, spending, and making change.
To teach them budgeting, give them a set amount of play money along with a shopping list, encouraging them to prioritize what to buy. This will help them make cost-effective choices.
You can also expand the role-playing to include jobs or services, like running a lemonade stand or offering pretend babysitting. When your children complete the task, you can offer them play money to teach them about income and savings.
Helping your children learn about money will not only make the concept more tangible and relatable, but will also foster essential life skills like critical thinking.
#3 Get Piggy Banks
Remember the classic piggy bank? It’s more than just a cute decoration; it’s a fantastic tool for teaching kids about saving money.
Get piggy banks for your children and encourage them to save money. One way to persuade your kids to save is to set a small, achievable goal. For instance, you can encourage them to save for a toy they want, a special outing, or funding an activity they enjoy.
As you introduce piggy banks, give your children a small amount of money every month. It could be any amount—$2, $5, or $10. Convince them to add a part of it into the piggy bank. Reward your children with a treat for every dollar they add to their piggy bank. Kids love gummy bears and M&M chocolates. Give them either of the two. This will inspire them to save regularly.
#4 Pay Your Children an Allowance
You can inculcate good money habits in your children by paying them an allowance.
About 79% of parents in the U.S. give their kids an allowance. Most parents pay their children $1 or $2 every week for each year of their age. That is to say, if a child is 10 years old, their parents would pay $10 or $20/week. You can follow the same.
Some parents, however, don’t give their kids allowance for free; they make them earn it. They tie it to the chores. Kids receive allowance only when they complete assigned tasks such as washing the car, mowing the lawn, vacuuming, washing the dishes, and tidying up their bedrooms.
When you attach a dollar value to each completed task, kids understand the value of money and that every penny must be earned.
Wrapping it up, teaching your children financial literacy doesn’t have to be difficult. These fun and creative ways can help you equip your children with the essential money skills they need for a financially savvy future.
As kids engage in these activities, they not only grasp financial concepts but also develop confidence in managing their finances independently. Remember to start small and be consistent. Ultimately, your kids will grow into financially responsible adults.