How to Teach Your Child the Value of Money?

Parents excel at teaching safety and health, but what about money? Include money lessons in home-schooling for fun education and motivation.

Key Points:

• Money skills matter and kids can learn them young.
• Show young children money’s appearance and origin.
• As kids grow, teach about needs, wants, saving, budgeting, and value.
• Engage kids in money-related play and learning.

Why is it important to teach children about money?

Money management is about earning, spending, saving, borrowing, and repaying. Learning money management now leads to better opportunities later.

TD Bank polled Canadian parents on money lessons. Results: 25% discuss money infrequently, and 63% avoid it due to their child’s young age.

When parents discuss it, kids are very good with money, and they learn to manage spending and saving at a young age.

Why vital for children:

• To handle money well, you need to understand financial literacy. It means knowing how to use money wisely to reach your life goals.

• Teaching kids about money makes their future safer. If you start teaching them how to handle money sooner, they can practice and improve.

How does talking about money help?

It’s best to teach kids about money early. Around age six, they can start getting pocket money. They grasp money’s value and trade for things. It is an excellent time to introduce saving.

Talking about money boosts kids’ confidence and skill development. Kids who discuss money tend to handle it better than adults.

Teach simple money concepts when young. By age seven, they grasp money’s limits. Show saving part of pocket money for desired items.

Your child will make financial choices in life. You, as a parent, must read them. High school: student loans. College: credit card offers. Early habits help them navigate challenges later.

10 fun ways to teach children about money in Canada

Every kid is unique, but specific steps guide what and when to teach. You can do enjoyable money activities. Try some of the following suggestions a try and use them to start money talking:

Play Quizmaster, create a money test, and offer treats as prizes.

Test younger kids with simple money questions. Make them think about money in their lives. Ask about heavy coins, sweets, shiny ones, and breakfast cereal costs, whose picture is on money, banks, and payment methods. Their answers can spark more curious discussions about money.

Offer a reward for “earning and learning.”

Introduce cash rewards for home help, linking achievement to money. Create a bonus scale for car cleaning, recycling, or lawn mowing tasks. Set suitable rewards, and tie pocket money to chores’ completion.

Start the concept of a pocket money “budget.”

Have your child choose your favourite items to spend pocket money on. Teach them about costs and quantity calculations. Discuss what happens if they save some money. Help them plan for a more significant purchase over weeks or months. One clever method is to.

Create savings jars

Reuse glass jars or plastic containers as simple savings trackers. Let kids decorate them to match their savings goal, like using gift wrapping paper for a big present or sea shells for a beach trip.

Allow them to pick a savings goal.

For motivation, let kids choose their savings goal. They need a reason to save, even if you suggest goals. Teens save better for something they desire.

Give control for a special outing.

Choose an upcoming event, and let your child manage to spend. Set a total budget for the day. Have them plan expenses, including travel, tickets, and food. Support them on the day, and let them handle payments.

Allow space for errors.

Teaching kids about savings needs time and patience. Mistakes might happen – early withdrawals or not enough savings. Discuss reasons and pressures. Find out why and adjust goals accordingly.

Could you give them a task to save while shopping?

Create a shopping list with a higher budget. Challenge kids to save while shopping. Suggest buying store-brand, looking for deals, and skipping luxuries.

Guide them in making extra money.

Reaching goals faster shows savings power. Help kids to make extra money. Such as part-time jobs (teaching others skills), small businesses (selling lemonade), and extra tasks for cash.

Involve them in your daily banking tasks.

Involve older kids in banking tasks they’re interested in. Let them help with statements, payments, and transfers. Explain essential banking tech, but protect login details. Share your budgeting and savings methods. Discuss short, mid, and long-term goals to teach about savings variety.