Here are 20 Awesome Ideas to Teach Kids About Money you can implement today.
Some may agree and disagree with these tactics, but then they can come up with alternatives or learn a different way. If anything, they can promote good habits if utilized correctly.
It is important to determine need vs. want. I will always provide the needs (roof, clothes, food, transportation, etc.)
Wants such as video games, snacks outside of our normal purchases, toys, dolls, etc. are a different story.
Heck, some of these might not make sense, but may provide some inspiration to find your own!
- If your child is a little one, check out our videos! They all incorporate memorable characters and simple lessons that will stick with them for the rest of their lives!
- If your child asks for you to pay for something, put the requested money in their bank account so they have to physically go to the bank and take the money out (most of the time they will change their mind)
- Create a “credit card” by preloading money onto it and say they can borrow the money from you if they pay you back
- Tell them at the end of the month they need to pay back that money in full or have to do chores that they hate to do (mow lawn, clean windows, do laundry, whatever they dislike most). This acts as the interest if they do not cover the payment in full.
- If they pay you back in full, reward them (as some credit cards would) with something they enjoy.
- Spend 15 minutes logging income and expenses for the day or week on a spreadsheet with them. Ask them to help you with the math. ASK them for help.
- Instead of blindly buying snacks for them, allocate $ that they are allowed to spend on any snack items they wish. This helps them prioritize and commit to choices.
- Have a list of chores on a whiteboard with a monetary amount on it. When they perform the task, review it and then pay them. More siblings means more competition for chores and the money, embrace it.
- When buying “needs”, put money onto a prepaid debit card and allow them to choose their own clothes for school. Give them a minimum amount of each item they should have (5 shirts, 5 pants, etc.) It is interesting to see what combinations they come up with!
- Promote healthy choices by allowing them more money for healthy items. For example, they are allowed to spend $20 on healthy snacks, or $3-5 on non-healthy.
- Teach them how you make money at your job or business and how you do it! Explain to them that this is how you are able to buy the items you need each and every day!
- Set up a “play store” in your home with fake money (or real if it wont get destroyed), switch roles so they can experience what it’s like to spend and earn actual money.
- It is mentally harder to spend actual dollars versus a credit or debit card. For a “want”, offer $20 cash or $15 on the prepaid debit card. They will save the actual cash and spend less when using physical money.
- Promote good habits by rewarding them for adding a % money bonus to chores if they do X amount of studying, deduct a percentage of their earnings on a chore for every “time sucking” activity (Netflix, Xbox, etc.) they do.
- Outsource some of the grocery shopping to them using apps and store websites. Make a list of items you need and let them add them to the carts so they understand how quickly items can add up. Make it a challenge by allocating a certain amount of money to that they can use to spend.
- Promote self-starting simple businesses (Lemonade stands, snacks, etc.). I ran across this one lemonade stand that was saving money to buy a new kayak for his brothers birthday! What an awesome act of generosity!
- Loan your child the money to start the small venture and have them return what they borrowed with a small interest. Congratulations, you taught them about business loans!
- Old toys? Try having a garage sale and having your little one manage and sell the toys they can part ways with. They get to keep the proceeds. They can donate the rest. Win-Win
- Start a small garden with your child, let them pick the vegetables or fruits to grow. Set up a small stand at the end of the growing season and sell those items to whoever walks or drives by the stand.