6 Fun Ways to Teach Kids About Money and Investing

By
Home Stager with Healthyhappyimpactful.com

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.

Comments (9)

Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Jennifer- one of a parent's responsibilities is to prepare their children to function as a responsible adult in the world. A big part of that is teaching them about money and investing. 

Oct 18, 2023 06:38 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Jennifer,
I love your passion for helping kids understand money management. It is so important.

Oct 19, 2023 09:12 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Jennifer,

I'm so glad that Carol Williams featured your post in her Second Chance Saturday Series as I missed it. Every parent should read your post because teaching children the value of money and understanding money management is so important.

Oct 21, 2023 04:17 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Jennifer. We, mostly the wife, must have done a good job. My son is now my financial adviser and doing well at it. Enjoy your day.

Oct 21, 2023 04:49 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

These are all great ideas! Also, teach them how to make change without a calculator. :-)

Oct 21, 2023 05:05 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

I have a deal with my grandson when he helps me do stuff. He has to split half of what he gets from me. Half to his pocket and half to the college account. 

Oct 21, 2023 09:13 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Oct 21, 2023 06:37 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Loved your post and my parents thought me how to appreciate and save money.... now with that said hope to interact with you in the future. Thank you Kathy Streib  for the introduction, Endre

Oct 22, 2023 09:54 PM
Charles Ross - eXp Realty LLC
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Jennifer, this is a foundational piece! Understanding money and investment isn't just a skill, it's a life philosophy. When we teach our children through such creative methods, we're not just giving them financial literacy; we're handing them the keys to a kingdom where they can build their own empire, brick by brick. #BuildingBlocksOfSuccess

Oct 23, 2023 10:17 AM