Did you know that you can start teaching kids about money as young as age three and they’ll understand? Teaching children about money is an essential skill they’ll use growing up, and money games for kids are an excellent way to make it fun and interesting. We’re going to outline several important ways you can start teaching money management below.
One – You Can’t Buy Everything You Want Right Away
- This one can be difficult for kids to grasp. However, they need to know that they can wait to buy items they want and save for it. You can create three jars labelled “Sharing,” “Saving,” and “Spending.” Each time your child gets money, have them divide it between the jars. They can use the spending money for small things they want, the sharing money for birthday or holiday gifts for friends and family and the saving jar for big purchases.
Two – You Have to Make Good Choices on What to Buy
- It’s important to teach children that money isn’t finite, and they want to make good choices in what they buy. Explain to your child why you buy the generic brand apple juice instead of the name brand because it’s cheaper. Give your child a small amount of money and let them choose what fruit you buy. This gives them hands-on experiences with making choices with their money.
Three – You Have to Track Your Spending
- To teach effective money management skills, your kids have to know how to track their spending. You can use technology for this aspect. Take the three jars you put together and get a money tracking app. Have them input an overall goal they want to reach. Then, they can update it each time they put money in or take money out. Piggy Bot is a very kid-friendly app they can use.
Four – You Have to Budget
- Budgeting is an invaluable lesson to instil in your kids. The younger you start, the easier it will be for them to incorporate into their lives going forward. Technology can help with this one too when you download FamZoo. The parents act as bankers who can instantly send their kid’s money for chores or allowances. It teaches basic money management and savings skills in a fun and interactive way.
Five – You Have to Pay Off Credit Card Balances Each Month
- Once your child is old enough, you can co-sign and get them a credit card. However, it’s critical that you explain that they should only charge what they can pay off each month. You can either add them as an authorised user on your current card, or you can cosign for a new one for them. Monitor it and make sure they pay it while explaining why it’s important.
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