Teaching children about money early on is a healthy practice that can set them up for financial stability later in life. It’s never too early to introduce financial concepts for kids, especially if they are interested in spending, saving, or making their own money.
While there’s nothing wrong with the traditional piggy bank method, other concepts might be more effective and easy for kids and young teens to follow.
Making money lessons enjoyable, relevant, and impactful as a parent will shape financial concepts for their kids. Thankfully, technology makes the process easier. Beyond that, you can use your own creativity to make learning about money fun and exciting for your kids.
So, consider putting away the piggy bank and trying some innovative introductions to financial concepts for kids instead.
Make money fun
One of the best and most effective ways to introduce financial concepts for kids is to share them in a way children will easily understand. You can use games and activities to teach your kids about money. Classic board games like Monopoly and Pay Day are fantastic for this. Your child will have fun playing with them while learning concepts about how to pay rent and utility bills, and they will understand the value of different dollar amounts.
Games like Animal Crossing can be a wonderful option if your child is more of a video game connoisseur. These friendly RPG games allow them to earn money by selling things or working in other ways, and they can buy items to improve their “homes” or appearance.
Most importantly, use games and activities to encourage open conversations with your kids about money. If they have questions about the games you’re playing, explain things to them in age-appropriate ways. The games should serve as starting points for further conversation.
Take them to the bank
Do you have a healthy relationship with your bank? If so, it’s worth it to help your child start their own savings account at a local branch. Bankers are often very excited to talk to first-time account holders about what it means to have an account, what they can expect, and why it’s important. Some of the most significant benefits of children having savings accounts include:
- Improved financial literacy
- Learning the investment process
- Learning the importance of setting goals
- Builds saving habits
- Increased financial resources
When you take your child to a physical branch location, you’ll also teach them the importance of fostering a relationship with their local financial experts. They will know who to turn to for financial assistance and won’t be afraid to ask questions about their money in the future.
Opening a bank account for your child might not seem all that exciting. But it will allow them to see the bigger picture of their finances. It can feel like a big responsibility, especially for a young child, and that will give them a sense of pride. Simply put, helping them open an account can make them feel like a “big kid,” so they’re likely to be excited about it and eager to add more to it.
Take advantage of tech
Do you ever feel like your kids are more tech-savvy than you are? If your children are confident with digital devices, consider utilizing money-saving apps to improve their financial literacy. Some of the best kid-friendly apps for money management include:
- Bankaroo
- SavingsSpree
- GoHenry
- Kiddie Kredit
If you have an older child or teen, apps like Greenlight can be useful. Greenlight allows your teen to have a secure debit card to which you can add money. They may have a weekly allowance, or you pay them for chores. It’s a safe and effective way to teach them about earning and spending.
Allowing your kids to get familiar with digital money management will help them in the future. We live in a tech-forward world, and everything from online banking to understanding things like blockchain and cryptocurrency is essential. Improving digital financial literacy will also make it easier for your children to prioritize their privacy online. It’s important to ensure your child understands the importance of staying safe online regarding their financial information. Address things like creating strong passwords, enabling two-factor authentication, and always using secure WiFi networks when they’re looking up their private information.
As a parent or caregiver, financial literacy is one of the most important life lessons you can teach your kids. When you introduce financial concepts for kids at a young age, you can watch them learn as they grow. By the time they reach adulthood, they can have a strong understanding of saving, budgeting, and healthy spending practices. Clearly, these concepts don’t have to be boring or too complicated. Try some of these ideas with your children, and watch them light up as they learn about these tangible, real-world concepts.
