Teaching Kids Money Skills Made Fun and Easy

_{Struggling to get your kids excited about money management? Learn the innovative approach that transforms teaching money into an engaging and enjoyable experience.}

Teaching Kids Money Skills Made Fun and Easy

Raising money-smart kids is an important skill for the 21st century. I was shocked when I first found out that our kids were not receiving any education about money and financial literacy in schools. Manual checkbook balancing may be a thing of the past as we enter a fully automated lifestyle.

Since the U.S. educational system isn’t too keen on teaching kids about money, this duty falls on the shoulders of us (mom and dad). We all know that teaching your children about the value of a dollar helps them prepare for the real world. When you introduce them to a financial tool like the debit card for kids, you are setting them up for success in a world where virtual finance is becoming the norm.

Teaching financial literacy to kids, however, can get tricky. Here are some ways to help your kids understand money and responsibility.

family spending time together in living room

Don’t Underestimate Your Kids

Complicated financial concepts like the stock market or securities are generally inappropriate for kids but don’t underestimate their ability to grasp the most basic ideas about finance. Go easy on the concepts you teach, but don’t talk to them like they know nothing.

It makes it frustrating for them as very young adults. Even a three-year-old is smart enough to understand the concept of monetary values, exchanges, and choices. Show them that we need to earn money for the items they need or want. Starting them with a simple budget will help them understand this concept.

They need to understand that they can not spend money they don’t have. As they grow older, try introducing more complex ideas, like what a bank account is for or how a credit card works.

Give Them an Allowance

Most parents give their kids an allowance, and that’s a good thing. What isn’t good is giving your kids money without them doing anything to earn it. One of the most important money management lessons you can teach your kids is that money doesn’t grow on trees or that it simply comes out of an ATM.

Show them that they need to work for the money they earn. Be it through chores they do or a part-time job for your older kids, working for their money is a life skill that will serve them in good stead as they enter adulthood. Helping teenagers to budget their money is especially important.

Save with Piggy Banks

Giving your kids a piggy bank to drop their coins into seems a bit outdated. Since the world you’re preparing them for is now heavily engaged in digital payments.

Practically everyone does their financial transactions through credit, and debit cards, phone apps, or by paying their bills online. Instead of giving them a piggy bank, download a chore and allowance app that both you and your kids can use. It is practical and a great way to teach them the basics.

That way, they’ll be familiar with “invisible money” at an early age. Digital financial transactions are the future, and that future’s already here.

Take Your Kids Shopping

Everything you teach your kids about money within the four walls of your home will be pretty much theory. Those theoretical ideas, however, can be put into practice if you bring them along when you shop.

If you leave your kids at home while you shop, they will miss out on a real-world demonstration of how to compare physical products and learn the difference between cost and value in the process.

Shopping is also a perfect opportunity to show your kid how cash works. Taking your kids with you when you shop and allowing them to get in on the action is a simple yet effective way of teaching your kids about money and opens the door to communicating how a budget works.

Showing them how to be frugal shoppers and save on expenses when possible.

couple arguing over money -Mistakes Parents Must Avoid When Teaching Kids About Money

Don’t Argue About Money

It’s not uncommon for parents to have disagreements when it comes to their finances. Keep in mind, however, that you are still introducing the concept of money to your children. When you argue about finances in front of your kids, they will hear your tone. This will generate negative vibes about money.

If you cannot avoid arguing over the credit card bill or secret bank withdrawals, it’s always best to do so away from the eyes and ears of your kids. You don’t want them to relate money to always having to be an issue in their relationships.

Good healthy talk about budgeting, savings, and preparing for the future will show them that this type of discussion is important.

Practice What You Preach

We know that kids are very impressionable. As long as the topic of money interests them, they will take all your financial responsibility lessons to heart. However, there will be a problem when you’re not practicing what you’re preaching to your kids.

You must teach them how important it is to understand the difference between cost and value, but they will be confused if you’re in the habit of picking up any grocery item without regard to the price. And that it is okay to impulse buy. Keeping a list, sticking to a plan, and shopping for all items needed will help them better understand grocery budgeting & shopping.

You teach them the importance of spending their money responsibly, but then they see you scratch your head, not understanding how you have massive credit card bills. If you want your kids to grow up to be financially responsible, be their financial role model. Show them the budget for grocery spending and make sure they see you’re sticking to it.

Tell them about the pros and cons of having a credit card and demonstrate how to use it wisely. As much as possible, refrain from teaching them things about money that you don’t do yourself so they won’t get confused.

Teaching Kids Money Skills Made Fun and Easy