How to Talk and Teach to Our Kids About Money
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By Bromwich+Smith Staff | 786 words | Reading Time: 3 minutes, 55 seconds | Last Update: 2022/03/15
How do we teach our children to be responsible about money? Especially if we haven’t had any hard or fast rules ourselves? We will share with you what we have seen work at all ages. Enabling you and your children with the head start you may have wished for yourself; setting them up for money success at any age.
Teaching Tips for Preschoolers and Kindergartners About Money
1. Use a clear jar to save.
The piggy bank is a great idea, but it doesn’t give children a visual. When you use a clear jar, they see the money growing. Talk them through this and express your excitement to see the money increasing.
2. Set an example.
This comes down to showing your healthy money habits which include talking about money in front of your children and with them. This will set them up to follow your lead when they get older.
3. Show them that “things” cost money.
Help them by taking a few dollars out of their clear jar that they can take with them to the store. Once at the store let them physically hand the money to the cashier.
4. They can learn to count money at this age.
Make counting money, play time. It will be easier to start to illustrate the value of it down the road. There are many play money toys out there that can assist.
How to Teach Elementary Students About Money
1. Show opportunity cost.
That’s just another way of saying, “If you buy this video game, then you won’t have the money to buy that pair of shoes.” At this age, our children should be able to weigh decisions and understand possible outcomes.
2. Give commissions, not allowances.
Pay them commissions based on chores they do around the house like taking out the trash, cleaning their room, or mowing the grass. This concept helps them understand that money is earned, and not just given to them.
3. Avoid impulse buys.
This age group really knows how to capitalize on the impulse buy—especially when they use someone else’s money. Instead of giving in, let your child know they can use their hard-earned commission to pay for it. Or encourage them to wait at least a day before they purchase anything over $15. It will still be there tomorrow, and they’ll be able to make that money decision with a level head the next day.
4. Stress the importance of giving.
Once they start to have a little money, guide them by pointing out opportunities where they support their community, charity or even someone they know who needs a little help.
How to Teach Teenagers About Money
1. Give them the responsibility of a bank account.
This takes money management to the next level, and will (hopefully) prepare them for managing a much heftier account when they get older.
2. Get them saving for college.
There’s no time like the present to have your teen start saving for college. Do they plan on working a summer job? Perfect! Take a portion of that (or more) and toss it in a college savings account. Your teen will feel like they are contributing toward their education and that will feel pretty good.
3. Teach them the danger of credit cards.
As soon as your child turns 18, they will be inundated with credit card offers—especially once they’re in college. If you haven’t taught them why debt is a bad idea, they could become another credit card victim.
4. Get them on a simple budget.
Since your teen is probably glued to their mobile device anyway, get them active on a simple budgeting app. Now is the time to get your teen in the habit of budgeting their income—no matter how small it is and especially when they are still living at home.
5. Help them figure out how to make money.
When you think about it, teenagers have plenty of free time—especially with all of their school breaks. If your teen wants to earn some money (and what teen doesn’t?), then help them find a job or an opportunity to do so. Better yet, guide them in becoming an entrepreneur. These days, it’s easier than ever for your teen to start up their own business and turn a profit.
Remember we are here to help, and we know teaching your children about money at any stage takes time. However if they start early to learn about managing money, you are setting them up for true success.
We also want you to know that if you are facing financial difficulty you are not alone, we're here to help. Call us today to receive an initial free, no obligation, confidential consultation by phone 1-855-884-9243. You can also request a call. Let’s see you flourish!
If you are interested to learn more check out this CTV segment about Money and Teaching our kids visit: https://www.youtube.com/watch?v=wARgkmWO5pI