FOUR WAYS TO TEACH KIDS ABOUT MONEY
- Treavor Dodsworth CFP®, CPA, CKA®
- Aug 1
- 1 min read
Developing a healthy understanding of money can begin even as a child. Below are four ideas for teaching our kids about money.
The first option is simply to have a split "piggy bank" or three jars. The jars would represent "Give", "Save", and "Spend." As the child receives money (birthday, odd jobs, etc.) money can be split into the differing categories. The child can see the importance of giving and that money is a limited resource. My earliest money memory is of my split bank - Chariot Victor Publishing Co. Coin Savings Plastic Store Bank.
I recently listened to a talk by Randy Alcorn. He said he took each of his girls to the local dump. Many children would find this to be a very exciting outing. This shows how items that once may have been coveted, fought over, gone into debt over, etc. eventually ended in the dump.
Another one of his ideas was to walk through the store and have your child point out what is a "need" vs. a "want." The idea is not that we should only buy needs but it is important to be able to distinguish the difference.
Finally, I read an idea to take out your monthly spending in one dollar bills and then stack them up in various categories. For example, housing, groceries, etc. This puts into perspective how much is actually being spent.
The opportunities to teach financial lessons to our kids are endless. Intentionally and creatively teaching money concepts can have lifelong impact.
We would love to hear your ideas. How have you taught your kids about money? Send to contact@monthlyfinancialcoaching.com