Teaching Kids About Money

Teaching Little Ones How To Value Money

Hi Moms!  Guess what? Some weeks ago, dad brought home a
learning toy. It was a cash register with a working calculator.

Mom then helped us learn how to add and has started teaching my
sister and me about money. She says it’s a wise thing to do early.

She believes teaching us the value of money while we’re young will
help us see success later when we grow up.

According to a Cambridge University study “most children’s financial
habits are formed by age seven.

The study suggested that most young children had grasped all the
main aspects of how money works and have formed “core behaviours
which they will take into adulthood and which will affect financial
decisions they make during the rest of their lives”.”   read more

One of the things we’ve been learning is how soon money disappears
when being used for things that aren’t important.

We’re learning how to spend wisely. Here we’ll talk about some of the
things mom is teaching us. Also, some other methods to use.

Earning Money

The first thing mom did was give us a small allowance. This is in
return for our help around the house.

Like cleaning the room, handing the dishes to mom from the
dishwasher, and cleaning up after our daily activities.

Getting paid will instill the best habit to us about money and about
saving and spending.

Mom gives us .50 a week for every year of age we are. So, we get a
raise on our birthday! My sister is up to $1.50!

Piggy Bank Or Jar

Put their savings in a savings jar or see through piggy bank.

“The piggy bank is a great idea, but it doesn’t give kids a visual. When
you use a clear jar, they see the money growing.

Yesterday, they had a dollar bill and five dimes. Today, they have a
dollar bill, five dimes, and a quarter!

Talk through this with them and make a big deal about it growing!”
                                                          read more

Every week mom tells us how much we have saved and if we want to
keep it growing or spend it.

“Every time your child adds money to the savings jar, help her count
up how much she has, talk with her about how much she needs to
reach her goal, and when she will reach it.”

“All those behaviors are really fun for kids,” says Kobliner. “And it
gives them a sense of the importance of waiting and being patient
and saving.”   read more

Allow Wasteful Spending

When we first saved enough to buy something, we were excited to
spend for a new toy.

We soon got tired of it, though, and it broke and we realized we wasted
our savings. This taught us a lesson of how to use money.

It has started to teach us the value of what we have and how to make
decisions with money.

“They’re buying something for $0.50 or $1.00. Their stuff is pretty
much guaranteed to break.

This lets us have conversations with them about saving up for the $2
or $3 version of the toy that will last a bit longer.

Wouldn’t you rather they learn this lesson on $3 instead of $3,000?”
                                                     read more

My sister and me see that once we spend for something, if we make
a mistake, we can’t get the money back.

Mom explained to us how we then had to wait and earn more and 
save again, before we could spend again.

Cause mom let us blow our savings, we were taught a valuable 
lesson that we’re learning from.

She points out the mistakes we make, and to learn from them so that
we don’t repeat the mistake again.

Involve Them In Shopping

Mom does her shopping on weekends. One day she takes my sister, 
and the next time she takes me.

When we visit the grocery store and other shops, she lets us take
charge of the shopping list.

She tells us what the budget is that week for the food, clothes or other
things we’re shopping for.

We’re encouraged on how to select the best goods which have value.
When mom disagrees, she tells us why.

What the better choice is that has a better value.

“Calculate how much you’re spending, either on an old cell phone or
a large button calculator.

Work out whether it’s more economical to buy smaller packs or giant
packs of, for example, soap powder or cereals.

This introduces the concept of working out per ounce or per pound
costs.”   read more

Other Ideas

There are more ways to teach little ones about money.

“Young kids love to play store, but an imaginary shop in the living
room is more than just a fun way for your child to exercise his
imagination.

By exchanging play money for goods, your child begins to
understand the basics of commerce, says Dr. Singer.

Use cereal boxes, fruit, sponges, or paper towels as store items.
Together, make pretend money and shop till you drop.”  read more

OK, moms! I hope your little ones learn from the games and their 
experience with you.

And remember, all kids are different and learn at a different rate
and age. So, don’t get discouraged.   Have a great day!

courtesy Early Learning at Home@youtube.com

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