Teaching kids about finances – saving vs. spending – can be overwhelming for some. Considering that only 55% of adults in America feel confident about their financial literacy skills, it’s hard to know where to start.
Just like adults, all kids learn differently. Here are a few strategies to get your kids excited about financial literacy.
Make it a game
If your child knows their currency, ask them how much something costs in different currency amounts. For example, how many quarters would it take to buy a candy bar? Or, how many five-dollar bills would it take to buy a pizza?
Give your child chores or tasks around the house in exchange for payment. This teaches them the value of what it takes to earn money in order to spend it on wants or needs.
Needs vs. wants
Make a list of what your family is currently spending money on. Then discuss with your children if the items are wants or needs. Kids will learn the difference between spending their money on something they need vs. something they want.
Set savings goals
Set a good example and show your children how to save. Let them pick out a goal of something they want to buy and then put together a plan to save money. Getting them involved in setting the goal will increase their motivation. Breaking the process down into smaller steps will help increase their understanding of saving money.
Make saving a routine for your children and set the right foundation for financial literacy.
This information is presented for educational purposes only. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.