Introduction: Financial education for kids is as important as for adults. How to teach them about it with simple and fun steps?
Financial education for kids is as important as for adults. If kids can understand and practice a proper way to manage their money, it will become a long-term ability. It will be useful intelligence for their entire life.
If kids are financially literate, they will learn more about how to make wise spending as they grow. They will have less risk of engaging in impulsive buying behavior and wasting money. Kids can start creating financial goals and find ways to achieve them.
Steps to Learn Financial Education for Kids
Kids pick up various information, starting very young, and it is essential to mold positive financial behaviors. Below are some steps that kids need to do. Most of the time, they will need your help to direct, assist, and evaluate why certain things happen.
- Making Spending Decisions. Newborn babies have choices. O the first year, they have made many decisions in life, such as what they want to eat and play. As parents, you can encourage them to make decisions more often.When they can talk, you can start to involve them in shopping, asking them to choose between two snacks, two toys, and many more. If they ask to buy things that they do not need, or which are too expensive, it is the time to teach them lessons about flexible spending.
- Spending Plans (Spend, Save and Give). Most of the preschool-aged children can make a simple spending plan. You can teach them to manage how much money they can spend, save, and give. Do not forget to tell them the benefits of saving and giving, and why people should do that.Some children already want to buy certain toys or clothes because they see that their friends have them. It is time to teach them about short-term savings before buying things.
- Understanding the Value of Money. Teaching kids about money could be very challenging if you did not start it when they were still in preschool. They should learn how money works and how people earn it. It will let them think twice before asking for some money for less necessary things.At the same time, this process will teach the kids about hard work. Tell them that people should work hard to earn money and think wisely before spending it. If your kids can count, teach them to count money and why it is vital to save it for long-term goals.
- Financial Responsibility. How to teach your child financial responsibility? When kids start to write and count, teach them to keep a record of money allowance and spending. It will develop their skills to know how much money they have spent (and what they use it for), how much money is still available, and how much money that they need to save for future spending.
- Prepare for Any Peer Pressure. Although you have taught your kids the importance of spending money wisely, at around age 8, peer pressure will begin.Kids are influencing each other about what they want to buy, clothes to choose, and many more. Parents and teachers need to set good examples and open to discussion with kids about this experience.
Fun Ways to Learn Financial Education
Nowadays, you can invite kids to have fun ways of learning by using financial literacy games for elementary students. There are countless financial literacy activities you can play with them.
Teaching financial education for kids is a long-term project. Talking about money should become a habit so that they will not be shy to express what they know and what they want to do with it now and in the future.