Did you know that by the age of 7 years old children have already formed their money habits? At the age of 3, your child will be able to grasp the concept of money.
Teaching your children about money is very important, and as you can see it is crucial to address the topic earlier rather than later.
But how do you educate your children about money that engages them and is fun but also informative? Well, we have some activities for you to try.
- Play Games
Playing games with your children that has money involved is a great way for them to learn more about the values of money. You might want to try playing Monopoly or a board game that involves money and teaches them how to spend it.
- Get Them a Piggy Bank
Piggy banks are great tools for learning more about money because you can encourage your children to save money. This lesson will be very valuable when they are older and learning about financial stability.
- Encourage Them to Have a Stall
Yard sales and/or lemonade stalls are great ways for your children to learn more about money. They will get to see first-hand how they can sell things in exchange for money. If there are any neighbourhood yard sales happening you might even want to take them to it and give them an allowance to spend.
- Give Them an Allowance
Giving your children a weekly allowance will help them to learn more about money. According to finance expert Alexander Smith from thegoodestate.com, your children will learn even more if you ask them to do chores or some kind of work for their allowance. This will help them learn about the real world and how money is earned.
- Play Shop Games
Playing shop games with younger children is particularly important to their understanding of money. Often children have a wild imagination and love to play games such as pretending they own a store. When they offer you things to buy from their store, make sure you give them pretend money.
- Need and Want List
Sit down with your children and help them understand the difference between need and want. For example, you might explain to them that they want as opposed to need a bar of chocolate. This activity will help your child develop and understand that not everything they want is what they need.
- Family Competitions
Children like to be encouraged to compete because the feeling of winning is a positive one. So why not introduce family competitions? For instance, give your children star charts and explain that for each good activity or household chore they do they will get a star. And the stars add up to rewards, such as new toys.
- Design Your Own Money
Arty and creative children will love this activity because designing your own money can be fun. During designing your own bank notes you could educate your children on the value of money and how much it is worth.
Investing smartly and ensuring financial stability is a very important lesson to teach your children. So, check out this reminder about how you should be investing for major financial goals.