When my children were young, I vowed to give them the financial skills and independence that they would need to become functional adults. At the time, I wanted to become financially independent myself. I reviewed focusing on their financial literacy, as this is a taught skill for kids.
Financial knowledge is important, so let’s discuss how to teach children about money, and how to teach them efficiently!
Why teaching kids financial literacy is important
They grow up quickly, and soon, they’ll be responsible for their own finances. But many young adults and students have very little understanding of finances.
It’s crucial that they begin to understand important financial concepts, such as how to save and budget, at a young age. This will enable them to make sound choices for the rest of their life.
If children are allowed to spend early, they will be more likely to make wise decisions later.
Kids’ financial literacy basics
First, it’s important to teach kids about critical money management skills. Teach these fundamental financial skills first.
Earning an income
Knowing what you should do with cash once you have it is crucial. But teaching children about earning money is an important first step. They must learn how to handle money, beginning with easy tasks, such as mowing lawns or babysitting, and then progressing to more complicated ones as they get older.
When children get their first earnings, they need to know how to do so. Budgeting will help them learn financial goals, math skills, expenses, and financial obligations. It creates an understanding that money should be spent for their expenses, and must also be invested for enjoyment.
Saving is an important part of personal finance, and education on this is critical from an early age. There are many ways to teach saving, like teaching your kids to put aside some of their earnings every time they receive money. A piggy bank may work when a child is young, but a savings account is more appropriate as they get older.
Good money overall habits
Teach your kids good financial habits. It also includes making fiscal decisions, setting goals, and opening a bank account. Knowing how much money they have and planning for it will help millennials build positive spending habits early on.
7 impactful ways to teach financial literacy for kids
Discussing good money habits, here are seven ways to coach financial literacy for children.
1. Teach your kids independence and responsibility through chores
My wife and my children learned many valuable lessons by helping me with various household chores while I was away. My children were taught to do chores independently and were able to grow their own skills and personalities.
My children were responsible for making their bed, keeping their bedroom clean, setting the table, and cleaning their laundry at the end of the night. Chores teach them the value of hard work and how rewarding it can be. Doing chores with your children teaches them the value of earning a living.
While they often complained about the work, they later thanked us for teaching them the skills they needed to live on their own.
2. Open a saving account for your child and take them through the process
What better way to teach children about finances than to have them manage their funds? At five years old, my children were given an allowance, and I began paying it weekly through their college accounts so long as they invested half of it into a personal savings account.
By demonstrating your beneficiaries how you make online payments, how to save, and how to use a banking app, you can educate children valuable financial skills.
Parents can establish a family rule to save untouched funds until they result in a substantial saving opportunity. This may include money from allowances and other sources of income including gifts. Your children will someday be envious of the opportunities their charitable contributions will offer them.
3. Educate your children about finance concepts
At the Women’s Business Development Council, I see every day how educational opportunities empower women. To be precise, knowledge is power. It will enable your offspring to make informed decisions and to pursue their dreams. Show your children that money is a critical part of their future.
Put education at the top of your parenting priorities by setting goals and celebrating educational accomplishments. Children learn by example and observation.
Set up a child’s college savings account as soon as possible, as this is part of financial literacy for children. Explore scholarship opportunities and take advantage of inexpensive after-school enrichment and tutoring programs. Involve your kids in the endeavor, as it will enable them to build their financial independence.
4. Leverage fun resources to impart financial literacy for kids
Dependent on age, you can use games, fun activities, and money books to teach your children financial literacy. As you’re teaching children these concepts, make the lesson as fun as possible. Use billfolds, coins, and interactive games to make the lesson more enjoyable.
You should create weekly cash dates or have weekly funds discussions. Your children can also have them invest in excellent business concepts for kids!
The entire goal is to turn talking about and dealing with money into a comfortable experience for your children. Do you have any suggestions? Check out our free course on how to teach your children healthy financial habits. Here are some financial literacy games for kids to have fun with.
There are many ways to teach financial literacy for kids. It doesn’t have to be boring! Play these games, along with several other educational activities, with your children.
There are many ways for teaching elementary school age children about finances. Check out these suggestions.
Old-fashioned board games can educate your children important financial concepts. Play these games with your kids to teach them about budgeting and purchasing wisely.
Money board games allow students to develop their financial literacy. And some easier games can even aid with financial literacy in kindergarten.
The Money Bags board game can help people learn how to earn and spend money. It can help with math problems and can shed light on earning money by using coins and currency.
Give it a try as a family to help your children learn more about money and income. It’s a fantastic financial literacy activity for elementary school students!
It is not necessarily one of the youth financial literacy games, but it’s an important activity. While budgeting may not be the most fun thing initially, your kids will enjoy being included in the budget.
They don’t need to be concerned with the bills or produce significant decisions regarding the money. But it is helpful to show them how the budget functions and to involve them in an activity that is enjoyable for them.
Kindergarten is a great time to start learning about monetary basics. Try these activities.
Teaching them the value of saving their money: Teach your children the benefits of saving up. You can help them decide which toy or game they want to buy, then remind them that they can eventually obtain the item.
When they can afford it, they will see how much they can save. They will form positive associations with saving funds, encouraging this skill as a future endeavor. It’s good to teach elementary school children about financial literacy with .
The U.S. Mint has creative educational games that teach basic monetary literacy in kindergarten. The U.S. Mint has numerous educational games for children to teach them about finances.
Your children can play games of flashcards and math questions. They could help you, but it is enjoyable to do together! Up-to-date information about financial literacy games can help kids learn money basics.
5. Teach your children the power of investing
Wealth building is the way to make money. Teaching your kids how investing works can help them become successful later in life.
Early action will give them the opportunity to obtain compounding, appreciation, dividends, and greater returns on their investments.
The best way to learn something is by doing, so be sure to start small with your children. $100 is a great way to start. Then teach them how their riches grow and how they will continue to add to it if they continue doing so.
As they get older, let them contribute to this amount from their own savings. Then they will see how much they can earn!
One of the best investing and financial literacy activities for elementary school students is by giving them some tokens or coins to invest. Give them a small amount and tell them that they get more tokens as they save. Show this by adding to their weight, to illustrate chemical affinity.
As they get older, you can also explain the ups and downs of spending by taking away some coins and adding others. You can make it creative by demonstrating to them how it works using something tangible.
6. Challenge gender stereotypes
When it comes to financial literacy for children, it’s important that we do not allow them fall into unsavory stereotypes. Girls may be encouraged to practice nurturing skills rather than earning potential. Handicapped by several factors, such as being self-employed or due to not receiving a salary, women make less than their male counterparts.
However, ladies do not have to possess weak self-worth to make a great living. Encourage women to pursue their dreams and make no secret of their desire to earn income.
Empower them to make positive change and lead by example. Whether it’s class president or joining the science club, encourage them to discover what they’re capable of.
Empowering them with this will enable them to realize that they can care for others with their own funds. They can channel their earnings into their families, communities, and causes they support.
7. Leverage your village to raise financially savvy children
The final strategy is for you. Raising children is hard work and should only be done together. Create an effective support team to help meet your teaching goals.
You will need mentors and other successful individuals in your life to guide you through life’s challenges and share sound financial advice for children.
My village was assembled from clever, capable women who shared their expertise to start a startup to support my loved ones and others.
They provided parenting advice and gave me access to their nannies and babysitters to take care of my children while I was working. My children benefited from their assistance and viewpoints as much as I did.
Independence is one of the most important things to teach your offspring. With knowledge and instruction, children can broaden their horizons, and with the support of their loved ones, they can accomplish their goals. They will learn the world, and their actions will serve as an example for others.
Financial literacy for kids is important!
My children’s financial savvy and their childhood savings accounts eventually provided opportunities that they could not have had otherwise. For instance, they were able to study abroad, travel the world for a year, and hold out for a new job in a new city until they landed one.
Their confidence empowers them to make good choices, as their financial independence gave them the freedom to make optimal decisions. Don’t underestimate the impact that financial literacy for children can make on the world.