Teach Finances To Kids
With inflation at the highest peak and the cost of living increasing on a daily basis, it’s a challenge trying to maintain a financial stability for many people.
Preparing your children to teach finances to kids is a vital concept these days. Knowing how to spend each dollar to the best they can is important to learn. To teach finances to kids can start at any age, with an age appropriate concept in mind.
Piggy Bank Concept
It all starts with a simple jar or container of any sort. You can provide them with a piggy bank of some sort or have them find a container around the house to use as a their own personal bank. Have them decorate with their names and anything that represents them. It will be their personal bank system where they can keep track of their money.
Earning By Doing
Earning is by doing is a great way to teach kids that money is not free. You have to earn it by completing tasks, just like the parents earn money through their jobs.
My kids have chores to do when it comes to earning money. Cleaning their own rooms are a given a so they don’t earn from that. When they clean mutual grounds of the house or fold their own laundry, they earn a certain amount of money that we agreed on.
Learning About Budgets
Setting a budget and learning about it may be a bit difficult depending on the child’s age. Even adults have a hard time keeping up with their own budgets.
Budget has to do with knowing how much money you have and how much money to spend. The problem is that we always want to or end up spending more than what we have, especially if you have the credit cards.
Teaching kids about budgets will have to do with showing them the comparisons of needs and wants. What are essentials that you really need to buy and what are things that you can live without but just want it. If we were to buy everything we’ve ever wanted, we’d all be broke and poor.
How To Better Save
Knowing how to take care of financial issues are also visible in a way. Calculator.me has some great tools to use when you need to calculate in different situations. Savings for sure needs a bit of all around calculations. Finding out what works for you is the best way. As for me, when I was a kid, I saved my money by putting them in different places so that I wouldn’t keep spending them. A dollar in the book or a five dollar bill under my desk were some ways for me to save more.
Debit, Credit, or Gift Cards
Sometimes providing them with either a debit card, credit card, or a gift card is also a good way for them to keep track of their money. Obviously credit card would be more for the older kids. They have debit cards for younger kids these days where you can put a certain amount of money and keep a constant track of it.
For me, personally, my daughter loves getting gift cards now. Whenever it’s her birthday or a holiday or some sort, she asks for a gift card so she can go to the stores and swipe them in use. She loves the feel of using a “card” as she calls it.
Teaching kids about money can start with simple math. Learning how money comes and money goes and saving them will teach the kids to utilize their money a bit more carefully.
The piggy bank concept is such a great starting point, and I love how you emphasize earning through tasks – a valuable lesson for sure.
We are trying to teach our kids about money. It is such an important life lesson. My dad was so good with money but never really taught us how to be.
We are actually trying to teach our kids to save better and that includes allowing them to compute/ budget their money. Anyway, will check out the tools you mentioned. Thank you for sharing these tips!
Love this and love that people are raising awareness to this as it is so important to do! Knowing how to tackle and deal with your finances is a fabulous lesson for sure! Wish I had been taught when I was younger as I had to learn through mistakes made. Thank you for sharing!