How To Teach Young Children About Money

You are going to teach your children many lessons in life, and few lessons are as important as how to handle money. After all, we both need and use our money for our entire lives, so why not give them a head start on how to save, spend, and keep track of their funds? The best part is, you can easily find tips on how to teach young children about money.

Teach Children The Basics of Money

Start by teaching your children the basics of money, such as how much each coin and dollar bill is worth. You also need to teach them how to count their money, if they have not learned this skill already.

One idea is to consider a coin bank that counts their money, even though they should still learn to count it on their own. Of course, a bank with a coin counter is going to come in handy as their funds grow.

Teach Children To Keep Track of Money

You can easily teach children how to keep track of their money by using a clear jar instead of a piggy bank. Besides, watching their money add up in a clear jar may motivate them to continue saving for something special. Once again, you can look into a clear jar with a coin counter.

Another idea is to teach children to write down how much they have before and after spending. You may even be able to find a budget book or printable template with a simple setup to get them started.

For older children, such as tweens, consider a debit card designed for kids, such as the Greenlight debit card for kids and teenagers. Of course, you need to show them how to use the card and how to use the app to keep track of their funds.

Show Them The Importance of Saving

Explain to your child that many people save some of their money instead of spending it all. You can even explain the reasons why people save, such as saving for a special treat, an event, or a rainy day. However, you may need to explain rainy day funds, depending on your child’s age.

As you teach your children how to save their money, consider a separate jar for their savings. In fact, this may be a good time to surprise them with a piggy bank. Once again, you can use the Greenlight debit card for your older children. They may decide to only spend or only save what is on the card, and place the rest of their funds in their jar.

Introduce Them To Wants vs. Needs

When teaching children how to manage their money, teach them how to balance their wants vs. their needs.

Of course, the rules change for children, especially since you take care of their actual needs. For example, a want for a young child may be a bag of candy, while a need may be the next book in a specific series.

One tip to give children is to sleep on a certain item for a few days. They may realize they don’t want or need that item after all.

It is also essential to teach children what certain items cost and how to pay for those items, as well as the fact that they’ll have less money after their purchase.

While introducing them to wants vs. needs, remind them that it is okay to treat yourself at times, but saving is important for a specific goal, such as a certain toy or video game.

Lead By Example With Saving and Spending

Remember, your children are going to follow in your footsteps, so it is essential to lead by example when managing your money. This means balancing your wants vs. needs, avoiding impulse buys, and adding to your savings.

You’re only human, so if you do make a mistake in front of your child, such as overspending on items you don’t need, use it as a lesson.

Leading by example is a great way to show your children how to adopt healthy spending habits.

Your Children Benefit From Learning About Money

Children listen more than you may think, and they take what they learn with them throughout life. Therefore, your children can benefit from learning about money while they’re still young.

I previously published this story on another platform. You can find the link to the original version here: https://medium.com/@tammys_85/how-to-teach-young-children-about-money-da05f52d52ee