No matter the age of your child, it’s never too early to start teaching them the three principles of money: saving, spending, and sharing! The more they understand at an early age, the better equipped they’ll be to make wise financial decisions later.
There are a myriad of ways to teach your kids about money. And how you teach them will depend on their age. A simple way to teach young children about spending, saving, and sharing is to give them a hands on experience. With my children, we visit the credit union every few months after they have saved up money in their piggy banks. We deposit a portion of their money into their accounts to save it, give some of their money to our church to share it, and then they spend some of their money at Target on a toy they would like. They take part in each step of the process, and even get excited about it too! This may look a little different for every family. Savings could be kept at home in a clear jar so your kids can visually see it growing. Sharing money could be given to someone they know or to a charity. And you could even spice up the spending lesson by matching their money (ex. Your child pays $5 and you match that with another $5 for the item they want to purchase).
Other great ways to teach your children about money may include board games like Monopoly Junior or The Game of Life, using a digital toy cash register, or playing online money games*. Setting a good example is key too. It’s okay if you’ve made money mistakes in the past. You can talk about those and give your kids insight on what not to do. Determining an allowance based on chores can also help your children understand that money is earned, not just given. When they have an allowance, it provides the opportunity for you to help them develop a spending, saving, and sharing plan as well.
The time is now to start teaching your kids and teens good financial habits. FORUM is available to help you. We offer three youth accounts: Aware Kids, Aware Teens, and Student Accounts. Each account is free and comes with multiple benefits and perks. Click here for more information.
*No affiliation with FORUM Credit Union.