I am sure when you were younger, you have heard the phrase, “Money doesn’t grow on trees.” Usually, our parents would tell us this mainly because we wanted something that was not a necessity. But as a kid, did we really know what that phrase meant?
We can teach our kids about money, but it will not guarantee that they understand the lesson at that time.
Children need to learn about money that’s age appropriate. They may not need to know how to balance a checkbook at age 8 but they should know that you do. They should also start learning the value of money. They need to understand how money works, such as earning it and spending it.
There are a plethora of ways on how to educate children on financial literacy. It is best to start giving analogies that they would understand. You could use toy money, or take them grocery shopping and show them how you follow your weekly grocery budget.
Teaching kids today will help them in the future. We want to ensure that they are getting exposed to financial literacy as early as possible. Teaching financial responsibility does not have to be “boring.” You can make it fun!
First, you could explore our website here at walterthevault.com where we have games, blogs and books where you can teach your children the importance of saving and spending money.
Second, you can buy toy money and make a game out of it in order to teach them how it works. You could play budgeting games or even teach them how to make change.
You could also give them the opportunity to earn money by giving them an allowance. Having your kids earn money will teach them the importance of the value of the dollar. After they earn their money, you can teach them on the importance of saving the money or how to properly spend it. This way, if your child wants to buy a new toy that is $50, they can save their allowance until they are able to afford it. This way, it makes your child become aware on what needs to be done to reach their $50 goal.
Lastly, have patience with your children. They are not going to become “financial wizards” overnight. Treat this curriculum the same as homework. Try to expose them to financial literacy daily with fun games and lessons that they would sure appreciate.
Money should not be a “taboo” topic in your household. It is integral we all start talking about it more in front of children. It keeps them aware and awareness is only the beginning to financial success.