What you'll learn:
➤ How to teach kids about money
Setting a strong foundation in financial literacy is crucial for kids. Studies reveal that many money habits are established as early as age seven.
To steer your kids toward sound financial choices, start educating them about money matters early on. Here are seven engaging activities to guide them:
1️⃣ Earning Through Chores
Encourage a sense of responsibility by having kids earn their allowance through chores. Utilize family-friendly apps like BusyKid or Greenlight to allocate task-based payments swiftly.
2️⃣ Part-Time Ventures
Even with a hectic school schedule, encourage part-time gigs like working at local stores or providing services like lawn mowing or dog walking.
Platforms like Nextdoor and homeowner’s association newsletters are great places to find opportunities.
3️⃣ Contribution to Purchases
Guide kids to contribute to their desired purchases, fostering an understanding of costs and budgeting. This practice helps them value money and comprehend spending limits.
4️⃣ Learning Through Games
Board games like Payday or Monopoly offer valuable lessons in money management, decision-making, and risk assessment.
These games simulate real-life financial scenarios, making learning enjoyable.
5️⃣ Bank Accounts & Debit Cards
Transition from piggy banks to kids’ bank accounts to introduce banking basics.
Platforms like Greenlight and GoHenry provide kid-friendly debit cards, offering transparency and control over spending.
6️⃣ Venture into Investing
Introduce the concept of investing wisely through a small custodial account at a brokerage. Involving them in investment decisions nurtures long-term financial skills.
7️⃣ Honest Money Conversations
Open and honest discussions about family finances help kids understand financial challenges and coping strategies.
Share insights into budgeting and adapting during tough times, empowering them to manage their future finances.
➤ How to teach kids about money FAQ
When to teach kids about money?
Studies conducted by researchers David Whitebread and Sue Bingham at the University of Cambridge suggest that many money-related habits are established by the age of seven.
This critical period plays a significant role in shaping future financial behaviors.1
How to teach kids about stocks?
For a practical introduction to the world of investing, consider setting up a custodial account with a brokerage.
This account allows parents to oversee trades while granting children access to the funds when they reach legal adulthood.
Which apps teach kids about money?
Apps like Greenlight and GoHenry offer a combination of debit cards and parental control apps.
Parents can monitor their children’s spending habits and use the apps to allocate allowance or chore earnings conveniently.
➤ Final Thoughts
Instilling financial literacy in children involves methods like earning an allowance through chores or part-time jobs.
Additionally, introducing savings accounts, kid-friendly debit cards, or custodial brokerage accounts familiarizes them with savings and the financial system from an early age.
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