Money affects our lives from the time we’re born. That’s why financial experts advise talking to kids about finances from an early age. Even a toddler can hand money to a cashier.
Teaching kids about money prepares them to be responsible. They also learn the value of working, saving, and setting financial goals.
Here’s how to get started:
- Tell them about you. Discuss your financial decisions, including past mistakes, so your child is less likely to repeat them.
- Play games. Monopoly and Pay Day are classics. There are also board games that teach kids about stocks and help them build math skills. Younger kids can practice counting coins or making change.
- Give them a job. Let kids earn money by doing age-appropriate household chores. As they age, they can walk dogs, mow lawns, or organize a yard sale with friends.
- Raise money for charity. Create a fundraiser for an animal organization or other cause. This teaches the joy of sharing money and giving to the community.
- Introduce the concepts of credit and interest. Buy something for your child and let them pay you back in installments from their allowance.
- Start saving early. Use a colorful envelope or decorate a box as a “piggy” bank. Encourage your child to put some of their allowance in it each time they’re paid.