Helpful How-To: Teaching Kids About Money

With this simplistic approach, you can use day-to-day activities to teach children about money.

Teaching kids about money is a responsibility that falls largely on parents and guardians. While the thought of raising money-smart kids may be intimidating, it isn’t beyond your reach.

Teaching Kids About Money

Play Games  

A creative way to teach your kids smart money management skills involves utilizing games. Monopoly, for example, introduces children to a variety of concepts including budgeting, negotiations, debt, saving for the future, and planning for unexpected expenses.

Without realizing it, kids learn while having fun. Allow them to make mistakes but have them think about their choices afterwards:

What would they have done differently? How difficult was it to earn money? How would savings have helped them in critical times? If needed, help kids come to the intended conclusion.

Involve Kids

It should come as no surprise that a great way to learn is by doing. For this reason, allowing your kids to participate in the decision-making process and following through with an action can be beneficial.

Establish a budget and have your kids help with creating shopping lists, clipping coupons, and looking for deals. You can do this while shopping for groceries, clothing, or the like.

Make A Trip To The Credit Union

Aim to teach your kids the benefits of saving. When appropriate, consider opening their first savings account to allow them to manage the account under your watch. Encourage kids to “pay themselves first” when they receive money, make deposits regularly, and give their balance time to grow.

Fortunately, many financial institutions take it upon themselves to make the process fun and rewarding for all. At A+FCU, for instance, youth are encouraged to save by having special resources, prizes, and events available to them.

Set The Example

As early as age 5, children begin to form their own money attitudes that influence behavior. Kids who are able to connect saving to increased gratification will be more cautious when spending compared to a child who has yet to discern that relationship.

Summary

Though peers, the media, and a variety of other sources that influence children, you can play a large role in shaping money attitudes. Lead by example and help kids understand the rationale behind why you do what you do.