Teaching kids healthy habits starts early and lasts their whole life. However, lecturing your child about the importance of money may not sound appealing to you or your child. Teaching money management doesn’t have to be dull. It can be quite fun!
Setting up different clear jars for each child’s money is a great way to begin teaching money management. The clear jars let them see their savings as they grow. Using cash will give them a good visual for gaining and spending money. As an added fun, have them decorate their jars. And if your children are old enough and have their own mobile devices, move the saving jars in the virtual world with Homey app. While setting up jars, discuss the importance of saving and explain to them the consequences of running out of money.
Family Saving Goals
A family savings jar can help kids feel more part of the family. For example, if you plan to buy a swing set, let the children put some of their money in the family saving jar. When the goal is reached and the item bought, kids will feel a sense of accomplishment.
Encouraging Them to Earn Money
Explaining to kids that money doesn’t grow on trees can be a difficult concept, but letting them earn money can help them understand. Whether through the traditional allowance idea or allowing them to run a classic lemonade stand, an income for a child is a great place to talk about spending and saving money.
While there are many online games teaching about money, traditional board games like Monopoly or The Game of Life are fun avenues to teach with. The Game of Life, in particular, gives a peek for kids into the adult life while teaching an important lesson about the difference between needs and wants.
Plant a Garden
Growing a garden indirectly teaches kids the importance of investing. With young kids, it’s hard for them to understand why we need to invest when it comes to money. However, when they garden, planting, watering, pulling weeds, and other activities work towards a tasty outcome they can enjoy. They must invest their time and energy to get the reward.
Of course, the best way to teach your kids how to manage money is to show them by example. Letting kids see how you budget and manage your money will give them a glimpse into what it means to be an adult, so when they reach adulthood, they will be less likely to experience severe financial troubles. If you’re waiting until your children are older, consider this: children are able to learn about money as young as three — so get going today!