6 WAYS TO TEACH YOUR KIDS ABOUT MONEY
by: Lisa Walker (Contributing Writer) | published: December 6, 2021
Teaching your kids about money doesn’t have to be a difficult task. If you start early and approach the subject the right way, it can become something your child looks forward to learning and can eventually teach you a thing or two. Below are six ways to help raise financially literate kids to get you started in the right direction.
1. Create a Budget Together
Teaching your kids about budgeting is a big part of preparing them for adulthood. It’s a good idea to involve them in planning a family budget — and even letting them manage it. They may not be ready to tackle every aspect of a full-on household budget, but having them take an active role in tracking income and expenses can help prepare them for the future.
2. Give an Allowance
An allowance can teach kids valuable lessons about managing money. Start with a small amount, say $5 per week, and increase it as they get older. The goal is for them to learn about earning, saving, and spending money responsibly.
3. Take Them With You on Shopping Trips
Even if you don’t give your child an allowance, take them with you on shopping trips. This gives them a chance to see that purchasing things takes work and research. Ask for the input on buying decisions, even if they don’t have much information about the items you’re rebuying. You can ask them what you should save money for or why it makes sense not to buy something right now.
4. Help Your Child Open a Savings Account
When you’re a kid, it’s difficult to keep track of the amount of money you have in your piggybank. The solution? Help your child open a savings account at your local bank, give them an allowance they deposit into their account each week and show them how to make withdrawals to buy things they want. This makes it easy for them to see how much money they have and how much they spend, helping them learn that spending less and saving more allows them to accumulate funds for future expenses, such as college tuition.
5. Teach Your Kids About Home Ownership
When your kids get older, teach them about the expenses involved when you own a home. Even if they can’t appreciate or understand financial statements and balance sheets at that age, talking about mortgage payments, explaining what is refinancing, and discussing property taxes raises their awareness and helps prepare them for future responsibilities.
6. Play Games That Involve Money
The best way to help your kids understand money is to play games that involve it. A good board game for younger children is Monopoly, where they can learn to handle money as they buy some properties and collect rent on them while paying rent on others.
Making Their Way in Life
If you want your kids to grow up to have a healthy relationship with money, begin early by weaving lessons into their daily lives. They may seem young now, but before you know it, they’re going off to college and making their own way in life.
Visit Prosper Pathways, based in Kenton, OH, for tips to help you reach your financial goals.
It is our recommendation to always consult with a licensed and reputable financial expert. This educational article is not specific advice. We strive to present quality, effective content. For specific references to our content please use our contact page.