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Start ‘Em Young! Three Ways to Teach Kids Money Management

calendar iconPosted: January 27, 2022
teaching kid about coins

Your kids might be more interested in Paw Patrol or Harry Potter than budgeting, but here are three easy ways you can teach them about money management.

1. Play Store

It’s time to bust out the toys! Work with whatever you have lying around. Mickey Mouse cash register? Perfect. Basket full of play food? Awesome. Use sticky notes to add a price to each food item. Have your child help you make fake money from spare paper. Now you’re in business. Your child can use the money you made to “buy” each item. They’ll have fun playing with you and learn how currency works along the way.

2. Try Bite-Sized Budgeting

Did grandma and grandpa send some birthday money? Use it as a teachable moment for money management. Give them three envelopes with a choice of how to divide their gift: one for spending, one for saving and one for giving. Say they receive $50. Maybe they want to allocate $15 to buy the latest book in a series they love, set aside $25 to save for a new tablet and donate $10 to the Humane Society because they adore animals.

3. Talk Money

You don’t have to give your kids a lecture about money, just make it part of your everyday conversations. If you’re at the grocery store, show them how you are comparing prices on applesauce. When you turn on their favorite Netflix show, tell them how you pay for it with a monthly subscription. Using your credit card to purchase new snow boots? Explain how you will pay your credit card off quickly, so you don’t get charged interest.

It might feel like your kids aren’t listening to you (especially when it’s time to brush their teeth or eat their veggies!), but as a parent you truly are their biggest influence. Helping them understand how money management works at a young age will serve them well throughout their lives.

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