It’s important for kids to understand money. You may have considered junior ISAs and want to know that your kids will use their savings well in the future. However, some children struggle to understand the concept of money and can pick up bad spending and saving habits if this isn’t addressed. So, what are some ways of teaching kids about money?
A piggy bank is a classic way to teach kids about saving. Coming in all colours, shapes and sizes, a piggy bank allows your child to see the amount they have saved, allowing them to count it regularly. You can teach them to have a healthy attitude towards money by encouraging them to save and then taking them shopping to buy a treat with it. This encourages a respect for money that will be useful in the future.
Kids love to act and play games – so why not play shopkeeper or bank owner and teach them a bit about money in the process? By giving them some coins and pretending to be a customer, they will have fun but also learn how to count change, work out prices and gain an understanding of how much things cost. Teaching these skills through games will make it more fun and they won’t feel as though they’re at school. Plus, you get to spend quality time together.
Alongside acting and role play, there are a variety of board games that teach children about money. Monopoly is a classic example where the players need to be savvy with their spending and calculate the risks of splashing the cash. With significant consequences, if you go bankrupt, the game teaches valuable life lessons and the stakes are high. By adding a level of competition, kids will learn the complications of spending and money, and they’ll enjoy themselves, too. Just be ready for a few arguments and a flipped overboard if things get really tense!
Who doesn’t love baking? Bake sales can be great ways to teach kids about money, as they get to see something they have made being sold for a price. They can stand behind the counter with you and be your little helper, counting the earnings and working out change. Plus, they’ll get to eat lots of delicious treats and be creative in the kitchen. What better way to spend a Saturday?
Another great way to teach kids about money is to give them a monthly allowance. This will teach them not to spend all their money at once, and to prioritise their spending. Some parents like to add terms to the allowance, like doing chores such as tidying their rooms or helping around the house. This can be a good thing, as it teaches them the realities of working for money. However, it’s important not to be too hard on your kids or make them feel stressed. Growing up is difficult enough without added financial pressures.