Money is something that nearly everyone deals with on a daily basis. It’s how we pay for the things we need—like food, housing, transportation, and more. But, things can often be confusing when it comes to money. That’s why it’s essential to start teaching children about money from an early age. In this article, we’ll explain why teaching kids about money is so important and some of the best ways to do it.
Why Is Teaching Children About Money Important?
There are a few main reasons why teaching children about money is important, including:
- Help Them Understand Its Value - It’s important for kids to understand the value of money—like how much $1 can get them or how much work it takes to earn $1. This will demonstrate that money doesn’t simply “grow on trees” and that everything has a price.
- Help Them Understand Savings - Learning about saving is also crucial for children because it will help them to not spend all of their money at once. It will also teach them to put money away for things they want to buy later or in case of an emergency.
- Help Them Understand Budgeting - Budgeting is another financial principle that is important to teach children, and it goes hand-in-hand with saving. This will teach kids to plan ahead for things in the future—like bills—and determine the amount of money they can safely spend while still having enough to cover all of their expenses later on.
These reasons all combine to form an individual’s financial literacy, which is their understanding of financial principles. Teaching these principles to children from a young age will help them to form good financial habits that they will carry with them into adulthood.
How to Teach Kids About Money
It may seem like teaching kids about money at an early age is difficult, but there are some easy—and fun—ways to do so, like:
- Teach them the numerical value of coins by letting them hold and compare different ones. Use stacks of coins to show the value of each compared to the others
- Have them roll loose change around the house into coin wrappers
- Set up a play store in your house, where everything has a price and you control the cash register
- Get them a piggy bank or savings jar and teach them to record what they put in. Only let them open it once they have saved enough
- Set up a pretend bank where you are the teller and your child can deposit money
- Host a lunch at home with play money and teach your kid about ordering, paying for food, tips, and more
The Boys & Girls Clubs of the Mississippi Delta aim to serve the children in our communities in many vital ways. Each of our clubs provides kids with a safe place to play, learn, exercise, and receive nutritious foods. We also offer core programs to help teach children about money, like our Money Matters: Make It Count program. Find out how you can get involved with our organization by signing your child up for a club or afterschool program, making a donation, or volunteering to help our cause today!