Teaching a child about money is an important responsibility as a parent and a teacher. It’s never too early to start teaching your child the value of money. Things like how to save and how to spend wisely are brilliant skills to have early on in life. By teaching them at a young age, you can help them develop good financial habits that will stay with them throughout their lives. As a parent, you might wonder why it's important to teach your child about money at such a young age. After all, they are just starting their journey in life, and there will be plenty of time to learn about finances later on, right? Wrong.
Studies have shown that children who learn about money management at a young age are more likely to make better financial decisions later in life. They are less likely to fall into debt or struggle financially as adults. By teaching your child about money early on, you are setting them up for financial success in the future.
Let’s have a look at ways we can help children be more money savvy:
Play Money Games
Playing money games is a fun and interactive way to teach your child about the value of money. You can play games like “Grocery Store,” where your child can buy and sell items using play money. You can also create a “Piggy Bank” game to teach them the concept of saving. Encourage them to save their money and count it periodically to show them how their savings are growing. Remember to give them praise when they are adding the numbers correctly or, help them when they make a mistake.
Set Up a Savings Jar
Setting up a savings jar is an excellent way to teach your child the importance of saving money. Get a clear jar or container and label it “Savings” or maybe even their name so they can see how much they’ve managed to save! Encourage your child to put their spare change in the jar and watch it grow over time. You can also set a goal for the savings jar, such as saving for a toy they want or a family trip! Don’t have a jar at home? Then make your own together! Here are a few ideas for you to do together.
Playing shopkeeper is an excellent way to teach your child about money and math. Set up a pretend shop and price items, then have your child use play money to buy them. You can switch roles and have them be the shopkeeper, too. This imaginative play helps your child learn how to count money, make change, and understand the value of different coins and bills.
Allowance and Chores
Giving your child an allowance can be an effective way of teaching them about money management. Set up a weekly allowance and give them tasks to complete, such as cleaning their room or doing their homework. This activity teaches them the importance of hard work and earning money. Encourage them to save a portion of their allowance and spend the rest on things they want. Talk to them about what they may want to spend it on and how close they are to getting it!
There are also books that can help your kid start their money journey, check them out here. Did you know that our game, Teach Your Monster Number Skills, can also help? Building number confidence means they are able to recognise the numbers and help with counting, addition and subtraction.
Good luck, and happy learning!
From Teach Your Monster HQ