How To Effectively Teach Young Children About Money

Growing up is never easy and it involves a number of lessons that children should be taught early on. One of the most important things that children can learn about is money. It does make the world go round and the sooner a child grasps how important money is to everyday life, the more responsible he or she will become as an adult. Here are a few tips for the learning curve:

Create A Money Jar

The piggy bank idea is cute, but children are visual and need to see how much money they’ve accumulated. Use a properly labeled clear jar where your child can see the difference in the amount of money he or she has collected. For example, one day your child may have two nickels and four quarters, but you give him or her a full dollar for being good and your child will see the difference.

Lead By Example

piggy-bank-imageYou may teach your child one thing, but if you and your partner are constantly arguing about money, it will forever stick in the mind of a child. Make sure you lead by setting a good spending example for your child and let them know that money must be earned with hard work and spent wisely.

Show That Things Cost Money

Your child will understand that saving money is important, but now you need to show why. Next time you go out shopping as a family and your child sees a toy, have him or her pay for it. By understanding how long it takes to save up for a toy, a child will become a responsible spender.

Children are very impressionable at a young age which is why they must be taught the importance of money. Always use plenty of visuals and set the right example as adults for your child to follow.

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