Now here’s a hot topic. We spend all day worried about money and budgeting, but when we have kids, it can be very difficult to translate these types of thoughts and worries their way. Money is a difficult thing to teach to someone who doesn’t have an income and who is not responsible for themselves, but I’ve found some really great ways to jump start this kind of knowledge for your children that I’d love to share!
- A great tip from US News says that as much as possible, use cash when purchasing things around your children. A credit card doesn’t do much good, as you simply swipe and go. Seeing the exchange of tangible money exchanging hands to get something you want. They even suggest having your child do the payment, something as simple as a parking meter – it’s a fun activity, and they feel special doing it, and also realize the exchange themselves. Using this same mentality, BabyCenter.com recommends shopping at a farmer’s market. Going to the supermarket, a child has no interaction or understanding of the work that went into getting the food there. Being able to choose a vegetable and pay the farmer directly, your child will understand the market economy in action.2.
- Teach your child about savings and rewards for savings. MoneyCrashers.com suggests 2 things: making a savings goal chart. This chart will signify something that your child has chosen to save for, for example, a toy. Using their allowance, or however your child earns their money, together you can figure out how many weeks it will take for them to get their reward. You can represent each week with a box and your child can put a sticker in that box once the money from that week is set aside. Put a picture of their reward on the chart as further inspiration of what they are working towards! The other suggestion that they had is offering rewards for saving money. For example, if your child doesn’t spend any money for a certain amount of time, provide them with a small reward or treat (ie. extra time for video games or tv, their favorite snack, etc.)
- Show them how you clip coupons! Even if you aren’t an avid couponer, BabyCenter.com is onto something with this idea, as it allows them to experience saving money and the concept of discounts. Next time you go to the grocery store, let your child be in charge of the coupon envelope, and let them see them scanned and see the price drop! Recap with your child afterwards to talk about how you saved money, and what you might be able to do with the saved money.
- Play games! This one’s easy, whose child doesn’t love playing games? They hardly realize how much they are learning from games half the time. BabyCenter.com suggests a few things: check credit union websites for games like printable coloring pages. They recommend Money & Stuff, Fat Cat, and the U.S. Mint site. Go old school and play some Life or Monopoly – same kind of concept here. US News also recommends a game called “Save! The Game”, which is an app for the iPad or iPhone that teaches kids the difference between wants and needs – a critical financial lesson.
- If your children are older, MoneyCrashers.com recommends opening your child a savings account to help explain the concept of interest. Look for savings accounts that earn interest. They recomment Ally Bank or Capital One 360.
Give these a chance, or let us know how you teach your kids about money! We’re all ears!
