As a child it was always exciting to earn allowance. I thought it was so cool to empty my piggy bank and count my money each week knowing it was mine and I had earned it. Whether it was earned from chores or a gift having my own money was exciting.
At a young age I was allowed to open my own account at the bank and eventually the money from my piggy bank got taken regularly. As the balance grew I felt like I was making a difference, saving for something great, and accomplishing something that was mine.
Teaching kids the concepts of money is actually a very important strategy to implement at a young age.Teaching your kids about money implements financial responsibility and beginning this teaching is an advantage for your child. These are core concept they will carry with them forever so implement the value of what money is and implement positive spending and saving decisions.
There are really 3 key concepts to discuss with your child.
1. Saving your money for a rainy day: This includes saving when spending is not necessary for things that you want, need, or even for emergencies.
2. Understand what a budget is: This is crucial to money management for kids. Explain this to your kids by showing them the boundaries of spending and that each month spending is limited and money does not actually grow on trees nor do those credit cards have endless limits!
3. Work hard for what you earn: Teaching your kids to appreciate hard work will also in turn teach them to appreciate the money that they earn. This is a great way to begin teaching the littles. Small chores and other things they help with around the house are appreciated and are rewards. You could also encourage them to help other friends or family.
Making your kids aware of the concept of money can be done at the grocery store, doing chores or other tasks at home, and also playing games to learn about money. For older kids its appropriate for them to have their own accounts or saving jars and learn to record and manage their funds. Here are some fun ways to teach your kids about money.
10 Money Games for Kids
What activities are you using to introduce the concepts of money to your kids? Please share your ideas!