12 creative ways to teach your child about money
Moms, you want what’s best for your kids and that includes teaching them about money. But, let’s face it, finances can be difficult to teach. You don’t want to overload your kids with information, and you might still be learning it for yourself, but you also want them to be prepared for the real world. So, how do you go about teaching your kids about money?
In today’s blog post, I want to talk about the importance of preparing our kids for real-life finances.
I feel like as a kid, neither I nor my husband was really taught the importance of handling and budgeting money. Even today I don’t think enough information is available for most people to make good financial choices. As a society, we are taught to spend, spend, spend, and put it all on credit to do so. Many people don’t have any savings to fall back on should they need it for a blown-out tire or an ac repair.
I know, we have been one of those people. While I’m not an expert on finances, I am continually trying to learn on this subject.
However, when our children grow up and move out on their own. We want them to be able to learn to live within their means, be prepared with an emergency fund, and not be in debt.
I’m sure far as finances go, that is what most of us want for out kids, right?
In Proverbs 22:7
Scripture tells us “The rich ruleth over the poor, and the borrower is servant to the lender.
What age should you start teaching your child about money
It is never too early to start teaching your kids about money. You can begin teaching them as young as three years old! Money concepts are simple and easy for young minds to grasp, and the sooner you start teaching them, the better!
One way to teach your kids about money is to give them an allowance. Allowances are a great way to help kids learn about budgeting and spending money wisely. You can give them an allowance based on their age or what you think they can handle.
Another way to teach your kids about money is to have them save up for something they want. This will help them understand the importance of saving money. It may take them a while to save up, but the wait will be worth it in the end!
A fun way to teach younger children is with Dave Ramseys Financial Peace Junior Kit- we purchased it for our kids, and they love the little savings pouch that comes with it, one for saving, spending and giving.
Ways to explain money to a child
– Money is something we use to buy things.
– Money is something we earn by working.
– Money is something we save so we can buy things later.
– Money is something we spend wisely so we don’t run out.
– Money sometimes comes in the form of coins or bills, but can also be digital.
– Money can be used to help others.
Here are some examples to help your children understand money:
Have them help you balance your checkbook
Give them an allowance and have them track their spending
Let them help you save money by clipping coupons and comparing prices at the grocery store
Teach them how to use a debit card and how to make withdrawals from an ATM
Help them set up a savings account and deposit money into it on a regular basis
Show them how to use online banking to monitor their account balance and transactions
Explain the concept of compound interest and let them watch their savings grow over time
Take them shopping for clothes, toys, or other items they need and have them pay for it with their own money
How to teach budgets to kids
Explain what a budget is:
A budget is a plan for how we will spend our money. It helps us to know how much we can spend on different things such as food, clothes, toys or whatever, and also save money for later.
Budgets can be helpful for adults and kids too.
Some helpful budgeting tips:
– Make a list of what you need to spend money on.
– Decide how much you can afford to spend in each category.
– Stick to your plan as best as you can.
– If you have money left over, save it or spend it wisely.
– Review your budget periodically to see if you need to make any changes.
Now while these topics seem like things only an adult would understand, teaching budgeting to our kids will help prepare them for when they need a one of their own.
How to teach kids about responsible spending
Teaching kids about spending wisely:
One way to teach kids about spending wisely is to let them experience the consequences of their choices. For example, if they spend all their money on candy one day, they may not have enough money for a toy they want the next day. This can help them understand that they need to be thoughtful about their spending choices.
I stood in Walmart giving my youngest 2 sons a lesson on why it wasn’t a good choice to spend money on those little chocolate eggs there by the checkout.
You know they strategically place them there for your children.
Anyways, I had to explain to them, that the price of these little things keeps going up, they are too expensive and that they could buy a hold bag of candy for the price they were wanting to spend on that egg with the cheap little toy.
After my financial lesson in the store, they both opted for the bag of candy, in which later my youngest told me he was glad he purchased.
Even young children can get this concept when it is explained in a way they can understand.
Another way to teach kids about spending wisely is to give them a set amount of money to spend each week. This can help them learn how to budget their money and make choices about what they want to spend it on.
Teaching your kids, the why behind saving money
A lot of times, kids will save money without really knowing why they’re doing it. They may just see it as something that adults do. But it’s important to teach them the reasons behind saving money.
Some of the reasons why saving money is important are:
– So, you have money for later
– So, you can afford to buy things you want
– So, you can help others
– So, you can have money in case of an emergency
There are many other reasons why saving money is important. The important thing is to help your kids understand that it’s not just something adults do, but something that can benefit them as well.
Teaching your kids how to save money
Saving money is a skill that kids can learn at any age. The earlier they start, the better! Here are some tips to help you teach your kids how to save money:
– Help them set up a savings account and deposit money into it on a regular basis.
– Show them how to use online banking to monitor their account balance and transactions.
– Explain the concept of compound interest and let them watch their savings grow over time.
– Take them shopping for clothes, toys, or other items they need and have them pay for it with their own money.
– Help them set up a budget and track their spending.
– Encourage them to save up for something they really want.
These are just a few ways you can help your kids learn how to save money. The important thing is to start early and be consistent. The more they practice, the better they’ll get at it!
A FRUGAL FAMILY’S GUIDE TO SAVING MONEY ON EXPENSES
Smart Ways to Save Money on Groceries
How to Set up a Homeschool Room on a budget
Free or cheap ways to home school
How to get started meal planning
Why do kids need an emergency fund when they begin working a job?
This is the question that one of my younger teenage sons ask me about his older brother. The older brother was just starting off with his first job and saving for himself a vehicle. The question was asked, why does his brother need an emergency fund since he lives at home.
Not only is it a skill that needs to be taught to our children at a young age, but even living at home, kids have expenses.
You see, when our kids get old enough to drive, they get a job, save their money for a vehicle, and purchase their own insurance.
Along with having that vehicle comes expenses to keep it on the road. If you have a flat tire, they must pay to have it fixed.
Now while it might seem harsh, and we do help our children in many ways, paying for all these areas for them is not in their best interest.
When teaching kids about understanding money, they need to learn responsibility and if we pay for everything for them, they don’t have a need to learn it.
That’s just how we do it though, you do you!
An emergency fund is important for everyone because unexpected expenses can happen to anyone, even kids! That’s why it’s important for kids to have an emergency fund.
An emergency fund is money that is set aside for unexpected expenses.
As my children got older, I have taught them the importance of an emergency fund.
Some examples of unexpected expenses are:
– A car repair
– A flat tire
_An unplanned trip
These are just a few examples of unexpected expenses. The important thing is to help your kids understand that they need to be prepared for them.
One way to help your kids prepare for unexpected expenses is to have them set up an emergency fund.
They can do this by setting aside a certain amount of money each week or month.
Dave Ramsey recommends $1000 as a starting point for an emergency fund. Once they have saved up $1000, then they can start working on other financial goals such as saving for a car or college.
Having an emergency fund is a great way to help kids be prepared for any expenses they might have and is a great way to prepare them for financial responsibility as they get older.
Teaching kids about responsible credit card use
Credit cards can be a helpful tool if used responsibly. Some things you can do to teach kids about responsible credit card use include:
– Explain what a credit card is and how it works.
– Help them understand that credit cards are not free money.
– Teach them about interest and how it can add up if they don’t pay their balance in full each month.
– Show them how to use online banking to monitor their account balance and transactions.
– Take them shopping and let them experience using a credit card to make a purchase.
Using credit cards responsibly can be a great way to save on some things, such as frequent flyer points or cash back on purchases. However, it’s important to use it wisely so it doesn’t become a temptation to use all the time. Increasing chances of getting into debt.
Teaching your kids, the importance of staying out of debt
Teaching your kids about debt:
One of the most important things you can teach your kids about money is to avoid going into debt. Debt is when we spend more money than we have and must borrow money to pay it back. This can be a very difficult situation to get out of and can cause a lot of stress.
Some things you can do to teach your kids about staying out of debt include:
– Help them understand what debt is and how it works.
– Show them how interest can add up and make the situation worse.
– Teach them about budgeting and sticking to a budget.
– Help them understand that sometimes it’s better to wait to purchase something if they can’t af Some things you can do to teach your kids about staying out of debt include :
– Help them understand what debt is and how it works.
– Show them how interest can add up and make the situation worse.
– Teach them about budgeting and sticking to a budget.
– Help them understand that sometimes it’s better to wait to purchase something if they can’t afford it.
One of the most important things about teaching kids about money is, avoiding debt as much as possible.
How to buy a car without debt
There are a few things you can do to avoid going into debt when buying a car.
-Save up the money ahead of time so you can pay for the car in cash.
-Consider buying a used car instead of a new one.
Ride with a family member or friend until you have the money to buy a car. -Consider public transportation or carpooling as an alternative.
-Look for cars that are within your budget.
One important thing to be mindful of when purchasing a car is spending wisely. By teaching these steps to your kids, it can help them avoid going into debt with a costly vehicle and a high monthly car payment.
Not to mention the interest that would have to be paid back.
How to go to college with little or no student loans
There are a few things you can do to minimize your need for student loans.
-Look for scholarships and grants that can help with the cost of tuition.
-Consider attending a community college for the first two years and then transferring to a four-year school.
-Also find a college that isn’t an arm and a leg. Some colleges are more money because of a fancy name. At the end of the day, the kids just need their education, not a high-priced name on a school, that they will have to pay more money for.
-Live at home or with relatives while you’re in college.
-Work part-time or full-time while you’re attending school.
Save money up and pay down student loans as they arise
The object lesson when going to college for little or no debt is to do your homework first. Pun attended!
Doing these things can help you to leave college ready to make some money, rather than be in debt for the next 10 years or many times longer.
One last though, help your kids research your career out and make sure they are going to be able to make a living at this profession before going to school for it. Some careers sound good in theory but leave the kids working at Burger King when they are through because they can’t find a job, or they are few and far in between.
By taking the time to understand the cost of college and how to finance it, you can help your kids avoid taking on too much debt.
Teaching kids about the importance of giving back
One way to teach kids about the importance of giving back is to have them help you donate money or clothes to a charity. This can help them understand that there are people in need and that their donations can make a difference.
Another way to teach kids about the importance of giving back is to volunteer with them at a local soup kitchen or animal shelter. This can help them understand the importance of giving their time to help others. Last is the importance of giving in offerings and tithes.
Malachi Chapter 3
8 Will a man rob God? Yet ye have robbed me. But ye say, Wherein have we robbed thee? In tithes and offerings.
9 Ye are cursed with a curse: for ye have robbed me, even this whole nation.
10 Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the LORD of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it.
2 Corinthians 9:6-7
But this I say, He which soweth sparingly shall reap also sparingly; and he which soweth bountifully shall reap also bountifully.
“Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity: for God loveth a cheerful giver.”
Luke 6:38
“Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again.”
It’s so important for our children to know that our blessings come from God. I have seen this firsthand, that when you bring tithes and offerings into the storehouse that God just opens the windows of heaven and blesses you. However, when we hold onto these resources, we lock up those blessings.
Afterall, everything we have is because of God. I want to encourage you to not keep these from God.
Learning these lessons is as important as everything else in this post to see our finances flourish.
In Conclusion
There you go, this is 12 steps to teach your kids about money.
Whatever you do, try to make teaching kids about money a positive topic of conversation in your household. By teaching your kids about responsible money management, you can help them avoid debt and financial difficulties later in life.
Key takeaways:
-Start early
-Be consistent
-Make money a positive topic of conversation
-Teach about budgeting, saving, and spending wisely
-Help them understand the importance of giving back.
By following these tips, you can set your kids up for financial success. Money doesn’t have to be a taboo topic. By talking about it and teaching them these important lessons, you can help them avoid debt and financial difficulties later in life.
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