The material presented here is for educational purposes only, and is not intended to be used as financial, investment, or legal advice.
Parenting on Finances: 5 Money Lessons for Kids
Raising smart and savvy spenders? Start ‘em young! Teaching our kids about money is just as critical for their development as learning about sharing, the golden rule, and saying please and thank you. That’s why we’re sharing financial lessons tailored to all types of kids.
Sports teach teamwork, social skills, sportsmanship and the importance of physical activity. Your child is going to need sports gear, which can be expensive! But it’s also for learning new things and making friends. Share how these experiences are better than materialistic items and frivolous wants. Also, if you’re buying and/or selling used equipment, involve your child! This is an opportunity to teach affordability and the value of reusing things.
Quality family time is a huge priority. But movies, trampoline parks, aquariums, zoos and children’s museums come with pricey admissions fees. To cut back on expenses, enjoy the outdoors together for free, especially in Arizona! Teach the kiddos that experiencing the outdoors, like exploring a swimming hole or hiking, are fun and adventurous without having to spend money.
Video games are a great way to teach that the choices we make have consequences. For example, choosing the right superpower beats the villain. With money, explain that if you buy a video game (decision), then you can’t buy Legos (outcome). Or, discuss how a credit card isn’t magical money. To use credit, you should have the money to pay the bill. Otherwise, you’ll have to pay more for being late (high-interest rate) or get buried in how much you owe (debt).
The young struggling artist is actually the budding entrepreneur! To understand the value of a dollar, a child learns that money you want to spend has to be earned. Bring this principle into the home by helping your child create homemade crafts, jewelry or decorations to sell on Etsy or at a local farmer’s market. This is a great way to encourage kids to be creative and explore their artistic talent with an entrepreneurial spirit.
For the musically inclined child, focus on the meaning of practice. Just like learning to play an instrument well takes practice, learning to handle money well takes practice too. Plan a weekly money lesson just like a weekly piano lesson. Here are some topics: impulse buying, wants vs. needs, working for a dollar, saving to spend and the importance of giving.
All kids learn differently. Tailoring financial topics and lessons based on what your child loves to do can help them engage and understand better. It’s never too early to introduce financial literacy to your family. The sooner, the better!
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