Teaching your kids about money - where & how to start

 

Kids are never too young to learn about important money basics to set them on a path of financial success – even though it might seem daunting and a bit confusing. Follow our top three money lessons and activities to teach your kids about the most important money lessons.

 

Lesson 1.

Saving Money

One of the most important lessons to teach your child at a young age is the importance of saving. From a new toy to their first car, learning about saving helps children learn positive purchasing behavior from the start.

 

Activity

Find a jar or piggy bank to create a Savings Jar. Have your child decorate the jar with pictures of an item they want and the price. Every time they earn or are given money, give them the choice to spend it or put it in their savings jar to buy their item. As their jar gets filled, count how much money they have and how much more they need to save. Once they reach their goal amount, plan a day to go shopping for their item and celebrate them reaching their goal.

 

Lesson 2.

Making Smart Money Choices

Making smart choices with your money is something families experience every month when they figure out their budget. Teaching your child about money decision making is crucial in helping them become financially independent.

 

Activity

Before you go on your next shopping trip to the grocery store, give your child $5. Talk with them about the importance of making smart money choices and making spending decisions. As you walk around the store, help your child make choices on how they are going to use their money. If they go over or under their $5, talk with them about the various choices they could make – picking more items out, removing items from their cart or saving money for next time.

 

Lesson 3.

Earning Money

When children begin earning money they also begin to understand the value of a dollar. When they begin to use their own money to make purchases, they soon realize how much work they have to do in order to purchase the items they would like.

 

Activity

Create a chart filled with household chores and the money that can be earned. Hang it in a common area of your house with stickers that can be used to show that the chore is completed. Talk to your kids about the different ways to earn money and decide what day of the week you will pay them for their completed chores.

 

Not sure where to start on teaching your kids about money? Visit your local bank or credit union.  At City & County, to encourage kids to read and learn about money, all youth in the Woodbury Community can participate in our Money on the Bookshelf program. Visit our Woodbury or Lake Elmo Branch and check out money themed books off our bookshelf. Read 5 books and receive a $5 coupon that can be redeemed in a savings account or in our store!