If you are interested in finding out more about financial literacy for kids, you want to ensure that your child knows the value of money and how to use it wisely. You cannot assume that these lessons are taught in school because only 17 states in the U.S. currently require students to take a personal finance course. So, what can you do to improve your kid’s financial literacy knowledge?
Perhaps so far you avoided talking with your kids about money because of your own financial frustrations or regrets. If children don’t learn about money early on, the risk is that they are either left in the dark or will learn bad financial habits from their peers and environment.
Here are five kid-friendly financial tips that will help you build your child’s financial knowledge with ease.
5 Easy to Implement Tips to Increase Your Kid’s Financial Literacy Knowledge
Regardless of what your child may learn in school, you as a parent or guardian are still the primary educator when it comes to teaching them about earning, spending, and saving money. With April as the Financial Literacy Month, this is a great time for you to teach your kids or grandkids about the value and how to use money wisely. It’s never too late for these critical financial lessons to begin!
Tip 1: Be a money role-model.
At its core, teaching your child or grandchild about money means modeling your own good behavior. Your child is always observing your behavior and that scrutiny only increases with your child’s age. You don’t have to be a financial planner or expert in order to teach important financial lessons. In the end, it comes down to you becoming a strong money role model that your children can learn from.
Tip 2: Play money games.
Whether these money games are board games or online games, playtime can be much more than just leisure. There are many games available that can make it easy to teach your kid about money, including old standard board games like Monopoly or many video or smart phone games. Playing these money games as a family together can reinforce the money lessons you are already teaching your children.
Tip 3: Get your kid involved in household finances.
Your kid is never too young to learn about money. Even your youngest child can grasp the basic money concepts. Are you ready to teach your kids about money? Give your children hands-on experience. For example, family trips to the grocery store or getting paid to complete chores can help to get your kid involved with day-to-day finances.
Tip 4: Encourage money saving with a matching program.
Are you taking advantage of your employer’s matched retirement plan? Then, why not give your kid a head start on this concept by setting up your own money matching program? Money lessons learned in childhood can have a direct impact on financial well-being as an adult. For example, offer to kick in a little extra for every dollar saved. Not only does this help to develop healthy money habits and attitudes towards money, but it can also help to set up for future financial success.
Tip 5: Increase the complexity of the money lessons over time.
For young children, money lessons may be very simple. Have in mind, older children can handle additional complexity. Make your money lessons age-appropriate to enhance their effectiveness, so your children can grow up to be money savvy adults.
As your children get older, they likely will have a basic financial understanding and appreciation for money. In order to deepen their financial literacy knowledge, it’s important to give your child a little more money independence. That could mean letting it work a part-time job during summer vacation, or to purchase necessities like clothing or a smartphone with its own money.
Teaching your kids about money may be one of the best investments you’ll make in your kids’ future. The financial principles you instill in them at a young age can last a lifetime.