Teaching your kids about money is no easy feat.
In addition, many of us parents themselves aren’t that great with money to being with. However, teaching basic skills like tracking spending, budgeting for purchases, and saving for long term goals and emergencies doesn’t have to go into much theoretical details. Learning can be practical and hands-on.
Today I’m sharing a few tips on how parents can use hands-on money teaching concepts to encourage kids to be financially savvy.
Start with cash
While we live in a digital world where paper money and coin currency seems to be near obsolete, we still need to teach kids about cash. Kids are often visual learners. That’s why they will learn faster if you give them cash in the form of various bills and coins. When you start teaching them about digital money keep things visual and interactive. A credit or prepaid card doesn’t say much about how much is on it and what it can buy, but an app can.
Count Money
From a young age, you can start having kids help you count money. Whether you are depositing cash into the bank or paying a cashier in cash, have your kids count out the money. This way they can start to grasp the concept of money counting. In order for kids to become more financially savvy, they must comprehend the basic concept of counting money. Try teaching them tricks like skip counting to make things easier.
Create a Spending Chart
Some parents may not be comfortable having their kids involved in the full aspect of what’s spent by the adults every month. But parents can still create a basic household spending chart. Consider having a chart on the wall. The family can update it and access it as a means to watch how much money is spent each week on basic necessities. This will help show kids the cost of adult living for easier budgeting skills later in life.
Involve Older Kids in Giving Allowance
Consider having your older kids involved in giving the weekly allowance out to the siblings. Have a place where you document chores that are done, such as our app. Then give the older kids some management responsibilities of monitoring their sibling’s progress. This will encourage your older kids to gain a true concept of money earned and perhaps encourage them to do more chores as well.
These hands-on money teaching tips can help you guide your child forward in learning about money. The best way to learn anything in life is through experience. Using these hands-on ideas will surely allow your kids to gain experience in the concept of learning money.
About the Author – Brandy Ellen Tanner is a Positive Lifestyle blogger who works from home while raising her 3 children. Learn more about Brandy at BrandyEllen.com and read her other parenting articles at ParentInfluence.com.
Tags: allowance, finlit