You want your kids to become successful in life. One of the ways to do that is to ensure they know how to manage their money as adults. You might think your child is too young to learn; however, you can start teaching your preschool-age children the value of money. As the child grows older, they can build on these skills until they're ready to face the adult world.
You want to teach your child to have an emergency fund or savings at an early age. You can start this lesson with a piggy bank. You want to look for one that's clear glass so your child can see their savings grow. If you can't find a glass piggy bank, then use a glass jar and allow your child to decorate it with stickers and a bow. Decorating it helps to build a sense of excitement for saving money in your child.
Create A Goal
Before you start filling the piggy bank, sit down with your child, and create a goal. Maybe your daughter wants a new American Girl doll, or your son dreams of his first bike. Find out the cost and create a chart so your child can see their progress. You can even hang a photo of the item your child is saving money to buy above the piggy bank. A visual reminder of the goal keeps your child focused on it.
If your child has a grocery store playset or another sort of shop, you always want to encourage your child to include a payment step. You want your child to learn that they have to pay for the items they want. A toy cash register can also teach your child about currency, the bills, and coinage. They can learn to make the correct amount of change and preliminary math skills.
Your four-year-old might not be able to wash dishes or get a part-time job, but there are chores around your home that he can learn to get an allowance. Your child can put away his toys, carry his clothes to his room, and take his sheets off his bed to earn money. It doesn't have to be a lot of money, but you want to connect these jobs to a financial reward. In this way, your kid learns the value of money and hard work.
Board Games that Deal With Money
While your younger child isn't ready to play Monopoly, they can play Junior Monopoly or Junior Life. These games help to teach the value of money. The games also teach them how to decide when to spend money. Your child can learn about the monetary compensation assigned to some professions. They can weigh the costs of education versus salary. The game includes expenses, such as marriage, spouse, and children.
Take Your Child Shopping
Take your child with you to the grocery store. When your child sees a favorite treat, tell him how much the item costs and compare it to other items in the cart. You could also get two of his favorite treats and explain the different prices. Ask if the taste or size of the more expensive item makes it worth the additional expense. On these trips, pay with cash. When your child sees the exchange, he can connect it with the value of money.
You can teach a child of any age about the value of money. The methods you use should vary by the age of your kid. If you start teaching these lessons at a young age, your child learns better financial responsibility.