As a parent, I know children are very clear about what they want and do not seem to care about the monetary cost. What seems more fun to me is that they have no problem spending our money or that of others, but ask them to take some money from their savings and you did be surprised at how angry they can get. Oh yes, before your kid will decide to spend his/her money, before making a decision, there is a thorough analysis and reflection and, of course, the guilt they have to propose to pay for themselves never stops surprising me!
Yes, I am a parent who strives to teach my kids about money matters and how best to handle it, but finding fun and challenging ways to do it is not always easy, especially when it comes to different age groups.
Here is some instance of ways to teach children money:
Mobile Devices
Give them a mobile device that can compute values during your shopping time, so that they can capture the value of items bought and keep you informed of the costs. Discuss some items with them to know what is inexpensive and expensive and also know their thoughts on if the item is important to the family or not.
Pocket Money
If this is not already the case, try giving out little pocket money for a few weeks, assign different allowance to different age groups. Once it is clear to them that they will not receive any money until a certain date, they will be responsible for the money they receive. Try to give different amounts every few weeks, from small amounts to see how your kids respond to these changes. See if they spend everything at the same time, or over time, also monitor what they spend the money on if it is on unhealthy food, treats, small toys, books, etc. This will give you an idea of what to do and how fast they are learning. However, young children will have difficulties when it comes to allowance, so only use them for kids who understand the time and can handle a certain level of responsibility.
Shopping
Take them with you and ask them to observe (if possible, jot down) the prices of different items of the same type. For example, how brands work, quality, weight, discounts, etc. Ask them why they think it is cheaper, more expensive, etc. to increase their knowledge of the cost. Kids can easily get bored when they go shopping, so make sure they are fully involved in it. It's a great way to learn.
Challenges
Bring them to work individually or in groups to buy something and come back with more money. Of course, you should also explain the value, so do it after understanding the concept of shopping mentioned in the previous paragraph.
Set of pieces
Throw a series of coins where they have to calculate how many lesser coins will equal a higher one, etc. For kids who are younger in age (2 - 5 years), they may need a reminder box to take off. In this way, they will understand that it is not only the number of coins that counts but also the value of each piece.
Observe transactions
Ask them to see you pay for something and how the case works. Any card, check, or cash transaction. Let them see how each transaction takes place. Teach them that money is a way to exchange a good or service! Explain the difference between the examples.
Banking experience
Bring them to the bank and show them how it works. Children love mystery and stories. Explain where the money is going, the money going back to the bank and the money coming from the bank.
Take them to an ATM
It always amuses me whenever I take my kids to the ATM stand because they think that it is magic that a box gives me only the money that I ask for. So I try as much and as easy as I can to explain to them that it comes from my savings or my loan and that every time I use the card to withdraw money or pay for goods and service from what is left in the account, it decreases more and more.
Brainstorming
Ask them to think about how to save more money and earn more. Even though their ideas may seem extravagant, they think, and that's good. Write down your ideas and try to keep adding them to the list. You never know if you can find a good idea to save money or create money!
Observation Trips
Take them to the store or drive into the shopping area and have them look around and see the different ways that people spend money and what they spend on. What means of payment do they use, in cash, POS, or via cash transfer.
World currency
Encourage them to collect money around the world and study the value of each piece. It's great for them to learn about money on a global scale. Open the converter online and show them how to create conversions! This will surely make them think!
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