Teaching young children about money can go a long way in preparing them for the future. Children learn and mimic their parents’ behavior. Thus, if you talk to your child about money when they are young, and set an example for them as they grow, they will be that much more aware and fiscally responsible as adults.
Here are some suggestions on what to tell your five-year-old about money:
- Although it may be a cliché, you can still tell them that “money doesn’t grow on trees.” Explain how mommy and daddy make money.
- Sit your child down, show them coins and dollars of different denominations and explain what they are.
- Explain the importance of tithing money.
- Explain why it’s a good idea to save money.
- Talk to your child about banks and what they are for.
- Explain how a budget works and why it is important.
- Talk about how saving money for something you really want is important.
- On your next trip to the supermarket, show your child the different prices of items.
- Tell your child that once you spend money for groceries, you have to save money for the following week so you can buy more groceries.
- Explain how money is used to purchase different things.
Another important aspect in teaching children about money is to utilize a visual component such as showing the child different coins, taking the child to the supermarket and pointing out different prices, having your child watch you as you balance your checkbook, or figuring out the household budget for the month.
Suggested Activity: Play store. Once your child knows how much a penny, nickel, dime, and quarter is worth try setting up a pretend store around your house. Place different items around the house and put price tags on them. Set up a cashier counter with a table, box, or chair. Create a cardboard cash register and buy some play money and you are all set to go! This is a fun and easy way to teach your kid’s about how to count money.
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I think that a lot of our young people lack respect for money. I know name brands didn’t mean as much to me when I was the one buying the clothes. Kids do need to know that money isn’t endless. When I was very little and my mom told me I couldn’t have something because it was too expensive, I told her, mom I’ve seen that whole check book you have, there are a lot of checks in there, what do you mean you don’t have enough money! I thought each check was money. We dont’ realise simple things like that we need to explain to our kids.
Exactly, Joanna! Kid’s really have no concept of money and sometimes the teaching them about money is very hard to do because it requires them having to learn some hard lessons on their own. However it’s better for them to learn now rather than when they are older and on their own.
I came across a great tip in regards to teens, money, and clothes. Have your teen make a back to school list (with your help if needed), give them ‘their budget, and then let them pick their own clothes. We can even start young by letting our younger children pick their own shirts or shoes with a budget. Gail Vaz-Oxlade has a great book “Debt Free Forever” that spends some time on helping teach kids about money. Since it is not Christian based there is no mention of tithing but it was a huge help for my family and me.
This is a great idea! Thank you for posting a comment, and the tips.