Teaching kids about money is all part of raising them to be well-rounded adults. When many adults reflect on their childhood, they regret that no one had taught them the basics of money management sooner. But teaching young people about money can be challenging, especially the little ones.
Here are six fun money-management tips to give your kids a great start with money at any age.
How to Teach Young Kids About Money
1) Give an Allowance for Chores
Don’t just give your kids an allowance just for the sake of having one. Engage your child in age-appropriate chores and give them an allowance for completing their chores. This will teach them that money is earned and give them a sense of independence and responsibility for managing it.
2) Money Saving Games
Kids love playing games, and so many fun games can teach them about money, saving, and investing. Engaging them in money saving games and challenges makes discussing money a fun experience and brings the information down to a level that is easy for them to understand.
3) Teach Them the Value of Money
Children will treat their money differently once they understand the value of money. When shopping in grocery stores or even online, try involving your young child and explain to them how much things cost and how much money is needed to buy certain things. But don’t stop at telling them the cost of an item. Help them take money out of their jar or piggy bank to pay for things they want to buy.
How to Teach Older Kids About Money
4) Encourage a Summer Job
Once your child is old enough, encourage them to find ways of making money. A summer job can be really beneficial to older kids. They have the opportunity to earn their own money, learn new skills, and gain independence. You can help them prepare for applications and interviews and advise them on how to save their money.
5) Help them Open a Bank Account
A bank account is a great way for older kids to learn about saving money. Help them to choose a bank and open a savings account. Encourage them to deposit money from their allowance and earnings from their summer job or side hustle to grow their savings. Watching their account increase will motivate them to continue saving money.
6) Introduce them to Investing
While investing can be a bit complicated, teaching kids about investing from a young age sets them up for success in the future. Explain the basics of investing in a way that’s easy for them to understand and encourage them to invest some of their money. Help them invest in a few shares of a company they’re interested in or a mutual fund.
Teaching children about investing and money management will benefit them throughout their lives. The earlier you start teaching them, the better prepared they will be for their financial future.
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