More than half of Americans over 30 say they feel lost when it comes to creating a financial plan or budget.
It’s clear that we need to make sure the next generation has the skills they need. Luckily, it’s never too early to start teaching kids about money.
If you want to help your child’s financial literacy, try one of these fun activities.
1. Role Play Restaurants and Shopping
One easy way to teach kids about money is to play with them. Good activities for younger children include running a pretend store or restaurant.
These activities let children exercise their imagination. They can also help build practical, real-world skills. You might practice good table manners alongside counting coins and paper bills.
2. Ask Your Kids to Help You Save Money While Shopping
Another way to teach children about money is to ask them to help with tasks designed to save money. Young children can help you clip coupons to find savings.
Older children can help you engage in comparison shopping online or at the store.
3. Make Them Earn Their Allowance
One time-tested method for teaching children about money is giving them an allowance.
An allowance can help children learn about saving and short-term and long-term goals. It can also teach them about work. Have your children help with chores to earn their allowance.
4. Have Them Make a Transaction
For younger children, cash is usually the best way to teach about money.
Have them save up some coins in a clear jar, then take them to the store to buy something. Even if it’s just a pack of gum, this will help them connect concepts of value and exchange.
5. Teach Older Children About Credit and Interest
When it comes to kids and money, many parents forget to talk about credit and interest.
Older children readily learn about these concepts. Help them by providing a prepaid card or a debit card with a limit on it. This way, you give them a preset “credit budget.”
6. Creating a Budget Is a Great Tool for Teaching Kids About Money
You can create a budget with almost any child, no matter their age. Older children should be taught how to budget for a household. Younger kids can create budgets for their imaginary shop or restaurant.
7. Teach Them to Save
One of the most important aspects of money management for kids is saving. They may feel they need to “keep up” with their friends by buying the same things.
Instead, teach your kids to save up for the items they really want. If they can’t afford something right now, they’ll have to wait. Ask them to think about their goals.
8. Hold a Yard Sale
The yard sale is a staple of American summers. If you have some stuff you want to clean out, think about putting your kids in charge of the sale.
This can teach them practical skills like making change or even price negotiations.
9. Teach About Investment by Creating a Stock Market
When it comes to teaching teens about money, talking about investing is an excellent idea. For preteens, have them “invest” in companies they’re familiar with, like Disney or YouTube.
10. Have Kids Pick and Track a Stock
One way to help kids learn about investment is to have them track a stock, like Alibaba stock, and see how it performs. Then have your child discuss with you if their money would grow with this stock.
Learning About Money Can Be Fun
It’s never too early to start teaching kids about money. These practical skills will help them prepare for their future.
If you’re looking for more fun ways to teach practical skills, take a look around the blog. There are so many ways to make learning fun.