6 Fun Ways to Teach Your Kids About Money

Instilling excellent financial habits in your children is perhaps one of life’s most essential lessons. With today’s technology, we now have many ways to involve our children when iot comes to managing and handling their money – in the way that they will find worth their time.

Use cash.

Be a role model to your kids. As much as possible, avoid paying for purchases using credit card, as this is a habit that they may pick up as they grow up. Let the kids see the actual money being spent on something, as this creates a sense of realness about the purchase. The more that they see actual money being spent, compared to credit cards or checks, the more wary they will be when it comes to spending as they can see that the cash is slowly dwindling down every purchase. Similarly, let them use cash when they make purchases, so they can see and feel the money leaving their pockets and hands.

Give them a modified piggy bank.

The traditional piggy bank may not be as effective in teaching kids about managing their money. Instead, give them a transparent coin bank that has four slots and partitions – save, invest, spend and donate. With this, they can actually see the money they are putting, while at the same time teaching them about learning how to set up boundaries when it comes to their money.

Take advantage of the Internet

The Internet is filled with age-specific financial games for children of all ages. Many banks have partnered with kid-friendly shows to make the experience more enjoyable and entertaining to them. This will likely draw their attention even more and make them commit to the plan as the figures are characters that they mostly relate with.

Let them play

The idea of games makes the thought of money fun for kids. Kids are naturally engaged and competitive, and so we can take advantage of games to instil values that they may otherwise ignore if it were handled like a lecture or a sermon.

Show them how to handle their own money.

Let your children take on an active role when it comes to managing their allowances. With this, consistency is key. Have a fixed amount set aside to be given to your kids, so they can plan ahead and budget their spending. It is important to always stick to the same amount on the same schedule – as kids who do not get what they are promised are also likely to break promises of their own.

Enlighten them about giving back.

In addition to encouraging them to donate, you can make philanthropy even more enjoyable if you do it as a family. Discourage them from holding on to their money too tight, as this may be detrimental to their financial mindset when they grow up.