In today’s world, it’s more important than ever to start teaching kids smart money habits. Unfortunately, many schools don’t have any formal financial education program. If you’re a parent or educator looking for ways to teach kids about money, don’t worry – we’ve got you covered!
1- Tell Them Everything About Money
Kids at this age are like sponges – they’re ready and willing to soak up any and all information you give them. When it comes to money, be as open and honest as possible. Explain where the money comes from, money technology, how it’s used, and why it’s important. This will set the foundation for everything else they learn about money down the road.
2- Make It Relatable
For kids, one of the best ways to learn is by seeing how the concepts they’re learning about apply to real life. When teaching kids about money, try to use relatable examples. For instance, if you’re explaining what a budget is, you could talk about how you use one in your own life to make sure you have enough money to pay the bills and save for your goals.
3- Don’t Avoid Debts and Loans
Kids need to understand that not all debt is bad. Yes, some types of debt should be avoided, like credit card debt. But some debts can help you achieve your financial goals, like taking out a student loan to pay for college. By teaching kids about the different types of debt, you can help them make smart financial decisions later in life.
4- Create Opportunities to Earn, Save, and Spend
Opportunities are a great way for kids to learn about money hands-only. If you can, create opportunities for them to earn, save, and spend money. For instance, you could give them an allowance in exchange for completing certain tasks around the house. You could also help them open a savings account and teach them how to start budgeting their money.
5- Invest in a Piggy Bank
Piggy banks are a great way for kids to save up their money. Help your child pick out a piggy bank that they like, and then every time they get some money, whether it’s from an allowance or a gift; they can put it in their piggy bank. Once the piggy bank is full, they can either spend the money or take it to a bank and open a savings account.
6- Start a Mock Stock Portfolio
If your child is interested in stocks and the stock market, you can start a mock stock portfolio for them. This is a great way to teach them how the stock market works and how to make money by investing in stocks. Depending on your child’s age and interest level, you can use play money or real money.
7- Have Them Track Their Spending
Teaching your elementary kid how to track their spending is great because it will help them see where their money goes and how much they’re spending on things like food, clothes, and entertainment. They may be surprised at how much money they’re spending on things they don’t even really need.
Kids at the elementary stage should start learning about money. When you teach them these ways, they will be able to understand more about money, how to use it, and save it.