It is simple to teach children about money. Parents should teach their children financial savvy. Transform your everyday activities into learning opportunities. Trips to the bank, store, or ATM, for example, might be an excellent starting point for a talk about your values and financial habits. You can incorporate money concepts into your child’s imagined games, such as playing at a pretend store or restaurant when they are very young. Continue reading for some simple and fun methods to introduce finance to your child.
• 2 and 3 Years Old
When given between a penny, a dime, and a nickel, a 2- or 3-year-old will nearly always choose the nickel due to its size. While very young children will not fully comprehend the value of money, they will be able to learn the names of the coins. Playing the coin identification game is one way to do this. You and your youngster can color in the shapes by tracing around the outside of several coins. Then have your youngster match the penny to the image while talking about the names of each one, according to Joseph Stone Capital.
• Children Aged 4 and 5 Years Old
Before you go to the supermarket, ask your preschooler to help you clip coupons. (Always use safety scissors.) Give them the coupons and tell them to keep an eye out for the items while you’re shopping. That will make kids feel helpful, and it’s an easy and amusing way to talk about money-saving, according to Joseph Stone Capital. Many 4-year-olds need to get reminded that after the play lunch, they must pay the bill.
• 6–8 Years Old
Your youngster will need a place to deposit his money as soon as he receives an allowance. Make a trip to the bank a special occasion. Encourage your youngster to start a savings account and make regular deposits. As the amount increases, you can talk about interest and how the bank compensates people for saving their money. Many banks provide children’s accounts with no fees and minimum balance requirements.
• 9 to 12 Years Old
Reading the store’s price labels with your child, looking at the size and price, and comparing the bulk amount percent is one technique to teach comparison shopping. Don’t forget to think about quality. Buy brand-name paper towels for a week, for example. Try a generic brand next week. Then talk about the differences and decide whether the brand name is worth the extra money as a group.
• 13 to 15 Years Old
It is not too early for a child to learn about the stock market in his early teen years. You can act as a stockbroker for firms your youngster is familiar with, such as Disney or Mattel. Make it a family pastime by having each family member choose a stock. Then analyze how the stock values of everyone’s choices move while you read the paper or watch the financial news together. For young teenagers, allowance can rapidly go between lunch money, school materials, and other modest necessities.