Money is a crucial part of life. That’s why children need to start learning early about spending and saving. Developing a sense of awareness and understanding now will help them have a better relationship with money as adults. Below are some neat tips and tricks to help kids learn about finances. One way to foster interest is to make them as fun and straightforward as possible.
Keep an Eye on Spending
When you want children to learn more about finances, especially saving, you need to discuss spending. Spending habits dictate how much they can put away. But, it’s not always easy to convince them to keep the money to use later. Therefore, you can come up with a goal that interests them. Have them print out a photo of it and hang it up somewhere they will see it often if they are having a hard time staying motivated. The desire and reminder to earn it is a great way to spend less and save more.
Play Money Games
Games like monopoly and others are a great way to teach children about money. There’s a whole host of skills that a child can learn by playing money games, including starting and growing a business. Admittedly, games teach skills such as buying and selling, negotiating, and money management. Playing such games helps the family bond, and kids are more receptive to lessons when having fun in the process.
Help Them Earn Their Own Money
Depending on their age, you can help them make their own money. If you have younger kids, have a separate list of chores they can choose to do around the house for extra money. If they are getting a bit older, consider setting up their own lemonade stand out front for neighbors to buy. This can be exciting for kids because it makes them feel independent while being a valuable teaching moment about how money works. If they aren’t ready or old enough for that yet, you can help them go through their room to see if there are toys or collectibles they can sell for money. For example, transformers g1 toys are valuable and you can typically sell these to make some extra money.
Teach About Giving
Money means more than accumulation. It’s also about giving to those less fortunate. Once your kids start earning and saving money, start teaching them about sharing their wealth with others. For instance, pick a charity that focuses on something dear to their hearts. Afterwards, please encourage them to give part of their earnings or savings now and then. It’s one way to teach them about lack and the importance of helping others. That way, they develop a sense of empathy and sensitivity towards others.
Talk about Money
Avoid reprimanding or hushing a child when they ask a question relating to money. For instance, if they want to know how much the house or car costs, have a conversation about it. It teaches them the importance of conversing about money and not living in fear. Such discussions create awareness and a sense of understanding in kids as they grow up. Later on in life, they’ll approach money with confidence when making purchases.
Introduce Kid-friendly Budget Apps
Many kids have smartphones and download lots of apps that come with a wealth of information. Since they spend lots of time using these devices, get some money apps for them. A good example is a budget app that teaches them to plan their income. They can arrange for money they earn doing summer jobs or chores at home. Candidly, simple budgeting apps teach lots of financial skills, including the difference between income, expenditures, assets, and liabilities. The information helps them learn more about planning and how to grow revenue when they want to earn more.
Learning is all about making mistakes and extracting lessons from each error. When you want kids to learn more about finances, let them make mistakes. For instance, if they have a savings goal but spend the money, encourage them to start again. Honestly, teaching them that failure isn’t the final answer boosts confidence stretching beyond finances. They tend to be less fearful when they make mistakes and choose to try again. Such teachable moments turn into life lessons that come in handy even when they’re all grown up.
Differentiate Needs and Wants
Perhaps the most significant benefit of introducing kids to budgets is to differentiate between needs and wants. Start cultivating awareness early. It helps kids learn more about what’s essential and what can’t wait until later. Therefore, they can wait to get a game console later rather than take money from the summer camp fund to buy it today. Set an example to help them with these decisions. You can save together for a summer trip and avoid removing money for other purchases until then.
Finances affect everyone, and it’s essential to start teaching kids about money early. The seven tips and tricks listed above are a great way to cultivate a culture of saving and better spending on children.