How to teach your young kids about money [simple ways to start]

Anyone who has kids knows that teaching them about anything can be a daunting task. But when it comes to money, it’s extra important to start early and provide them with guidance in order to help them develop healthy financial habits. Here are some tips on how to teach your kids about money.

1. Introduce the topic of money to your kids

First, start with basics like teaching them how to count money. Learning the difference between the coins can be a fun task and teach your kids about their value. Kids as young as 4 can start to understand these differences.

You can also introduce the concept of budgeting as young as 4 or 5. Depending on their age, this can be as simplistic as a sticker chart or as complex as a spreadsheet. This will help them understand where their money goes and how to make better choices with their spending.

2. Help them understand the value of a dollar

One way to help your kids understand the value of money is to give them chores and then pay them for their work. This will help them understand that money is something that needs to be earned and that it doesn’t grow on trees. You can also talk to them about the importance of saving money and setting aside some of their earnings for future goals.

3. Discuss the importance of money management

It’s also important to discuss the importance of money management with your kids. This includes topics like budgeting, goal setting, and investing. Help your kids create a plan for what they want to do with their money. This should include both a short-term and long-term approach. Having small goals like saving up for a small toy and large goals such as saving for college can make all the difference in helping your kids be smart about money.

4. Let your kids make mistakes with their money

One of the best ways to learn about money is to make mistakes with it. So, don’t be afraid to let your kids make a few mistakes with their money. Just be sure to help them understand why it was a mistake and how they can avoid making that mistake in the future. Remember, mistakes made while they are young will be less costly than when they are out on their own.

Conclusion

Money is an important topic for anyone. Knowing how to manage your money, how to make your money work for you, and spend less than you make are all important concepts for us to teach to our children. Tell me what you’ve done to teach your kids about money!

Want this chore chart that your kids can use to earn money? You decide how much to pay for each chore and let them earn their own money. Download it below: