Knowing how to handle money is an essential skill we should have. The knowledge you have gained will help your children well as they grow older. It’s never too early to teach your children about money and financial responsibility. In fact, studies have shown that children who are taught about money at an early age are more likely to be financially responsible adults and teaching them in an age-appropriate and engaging way is most effective.

Teaching young children about money

For very young children, start by introducing them to the concept of money. Show them coins and notes and explain their value. Using play money can help them to understand how money can buy the things they will want and need. As they get a bit older, you can start teaching them about saving and spending. Help them set up a piggy bank and encourage them to save a portion of their pocket money or  money they receive as gifts.

Teaching preteens about money

As children get older, they will have a better understanding of the value of money which is a good time to start teaching them about budgeting. Give them a set amount of money each month and help them make a budget. This will teach them about the importance of managing their money wisely.

Teaching teenagers about money

Teenagers are old enough to start learning about more complex financial topics such as investing, credit, and debt. Teach them about the basics of investing and encourage them to start saving for their future. Teach them about credit and the importance of establishing good credit. And, teach them about debt and how to avoid falling into debt traps along with the consequences of bad money management.

Why it’s important to teach children about money

Teaching children about money is important for many reasons. First, it will help them develop good financial habits that will serve them well throughout their lives. Second, it will help them understand the value of money and how to make smart financial decisions. Third, it will help them avoid financial mistakes that can have long-lasting consequences.

6 fun ways to teach children about money

• Play games – There are many board games and card games that teach children about money and financial responsibility. Games like Monopoly, Life, and Payday are all great options.
• Use a pretend shop – Set up a pretend shop in your home and let your children “shop” for items using play money. This will help them learn about the value of money and how to make smart buying decisions.
• Give them a budget – Give your children a set amount of money each month and help them make a budget. This will teach them about the importance of managing their money wisely.
• Let them help with grocery shopping – Take your children grocery shopping with you and let them help you compare prices and find deals. This will teach them about the value of money and how to make smart buying decisions.
• Teach them about saving – Encourage your children to save a portion of their allowance or any money they receive as gifts. Set up a savings account for them and teach them about the benefits of saving.
• Lead by example – Children learn by example, so make sure you are setting a good example when it comes to financial responsibility. Show your children how to make smart financial decisions and how to manage money wisely.