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Our boys are in elementary school and they have started asking questions like “Can we have an allowance?” and “Why do we have to put our money into our savings account?” They are curious and it is the perfect time for teaching our young children about money.
We have been teaching our kids about money for quite some time – talking about how and when we save and when we spend. We talk about donating money to those in need and giving money to the church. We talk about looking for great sales to save money. We talk about trying not to buy what we don’t need and planning for our future.
These ideas will help you to teach your children about these same things.
1- Give your child THREE jars.
Label one as SAVE. Label one as GIVE. Label one as SPEND.
I have heard some people say that they have their children put an equal amount into each jar (example: if they earn 75 cents, they would put 25 cents into each jar) This is a great way to get them started.
I have also heard that you could teach your kids to put 10% into giving, 40% into saving (long term) and 50% into spending. I personally like the idea of building up the savings by contributing the most to savings, but it is up to you and your child how you distribute the money.
Our 6 year old, Beau, is saving for a mustang (yes, really). He has not spent any of his birthday or holiday money in over two years! He has his mind made up that he will have one by the time that he is 16… and I could see that happening!
2- Have a Coin Toss in the Water game:
Set up the game–>> Fill a baby pool or a small storage tote with water and place a plastic bowl on top (the bowl will float on the water). Give each child $1.00 in change (I like to give them a variety of coins, to make adding it up a little more challenging). Have the kids toss the change into the bowl. When they are finished, they add up how much money went into the bowl. If you are playing with friends, the person that got the most in is the winner.
3- Play a money game.
When I taught second grade, I would set up learning centers in the room and I always had this game as a center activity. It was my favorite Game to teach kids about money Game, by far! We have it at our house and our own kids love to play it, too. It teaches kids how to earn money (example: Clean the dishes- you have earned $1.75) and how to spend it (You broke your mom’s vase – pay $1.00)
4- Read a book about money.
This book: Lemonade in Winter, is a great one to introduce kids to the idea of making, counting and spending money.
5- Read up about how to teach your kids about money.
I love this book, Smart Kids. Smart Money – by Dave Ramsey and his daughter. (you can listen to part of it here)
Last tip: Teach your kids the power of saving money by shopping around! At Groupon Coupons, you don’t spend any money upfront. All coupons are 100% free. Some of our favorite summer deals were purchased from Groupon and are from stores like coupons for Home Depot ( perfect for summer DIY projects) and Vitacost (plenty of healthy ingredients at good prices).
I hope those tips were helpful to you!
For more tips on how YOU can save money, check out my book to save you money!
I’m definitely going to try the first one. My 5 year old is always telling me I should buy her this and buy her that. It’s time that she learns that we need money to buy things & money doesn’t come easily.