The Kitchen Table

Introducing Money to Children: Common Cents

By: Megan Oberst

 

When at-home learning is becoming more prevalent during these times, parents may be looking for unique ways to teach their kids about necessary life topics, or more specifically, financial lessons. Teaching kids about money can seem like a daunting task, but starting small can have big rewards.

Younger Children:

While the kids may be learning their letters and numbers, introducing money board games or other interactive activities involving images of money or simple counting can help children become familiar with identifying money values and physical descriptions of paper or coin money.

Kids keep finding coins on the sidewalk? The process of saving has never looked cuter. Consider getting your child a piggy bank to ease into how they can save their money to buy something at a later time. Children can practice identifying the coins saved and work on tallying up their total amount. Every penny counts! Oink.

Finally, while the store might be a setting for a meltdown, it’s also a great opportunity for kids to identify what it means to buy something in real life.That visual of seeing you check for prices and purchase goods at a register can translate the crucial understanding that things cost money.

Older Children:

As kids get older, they might be too cool for school, but savings never go out of style. It’s never too early to open a savings account. Some parents may have opened their child’s savings account long ago but some could also start when their child gets their first job or when that first wave of true independence strikes. Sitting them down and explaining the necessity of a savings account is key, feel free to touch on experiences down the road that require saved funds.

Introducing older children to credit or debit cards associated with a personal bank account is a solid step into financing, and for some, truly is the first test of financial independence. Discussing the limitations on each type of card and when it is the best scenario to use said cards can help them understand how to spend their money. Learning about budgets is a natural conversation that can follow.

TV shows, video games, and stuffed animals will eventually be put aside, but financial knowledge can stick. Expanding a child’s knowledge of good financial habits can start as early as needed and prepare them for successful financial decisions later on.

*Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice.