Many kids are going to college without any knowledge about money, how to save, or how money works in general. This is setting them up for a hard financial road, but you can prevent this from happening to your kids by teaching them early. Here are a few tips for getting them started young:
1. Show them how money works. Play pretend shopping, teach them the coins and dollars, and the concept of prices.
2. Explain that money is from working. Explain that you work to earn money and you use that money to pay for food, clothes, and house to keep the family happy and healthy. You can tell your children they have a job-stay focused on their studies! You can involve them by paying them to do their chores at home.
3. Make sure to clearly explain the difference between want and need! Have your children practice separating things into “want” and “need” to learn early on how to tell the difference. For example, “vegetables” is a “need” and “cookies” is a “want!” This will teach your children to be wiser with spending.
4. Let them save money! Get them a jar so they can put the coins in and see how much the money adds up over time. Give them a goal for why they’re saving money. This will give your children a visual of what saving money looks like and understand the process.
Most important- MAKE IT FUN! Money is a part of life and there’s no reason why it should not be an enjoyable learning process.