It’s never too early to teach your child about money. In fact, by age seven, many of our financial habits are already set. Financial literacy isn’t just important in itself; it also helps your kid avoid pitfalls when it comes to money and finances later on.
Teaching financial literacy early has a host of benefits, including teaching kids how to manage money well in the future. For parents, it can be a challenge to find the right lessons, so here are some tips and activities to use if you want to teach financial literacy to your kids at home.
1) Open a Bank Account With Them
A great way to get your child excited about the first step to financial literacy is to open an account with them. They can open a bank account, choose a password and have fun spending the money in their account. You can even set up an automatic savings program and add an additional interest rate to it.
Opening a bank account will teach your child about the importance of savings, how to make deposits and how to send money via online apps.
2) Teach Them How to Set a Budget
One of the best ways to teach your child financial literacy is to teach them how to set a budget. They can learn how to set a spending and saving plan, how to track their spending habits, and also practice using a spreadsheet or online app to track their expenses.
Budgeting can be daunting for adults, but with helpful apps, it can be much easier to set a budget for your child. They’ll learn about saving up for items and what to do when their budget isn’t working.
3) Let Them Earn Their Own Money
Make it easy for your child to earn their own money. You can start by encouraging them to go door to door and ask neighbors to donate to their cause. You can teach them how to use a lemonade stand, or even set up a free online shop.
Let your child see how much money they can make. It will give them the opportunity to learn how to save, how to make smart purchases, and how to make long-term investments.
4) Encourage Them to Manage Their Allowance
Encourage them to use their allowance or money earned by working a part-time job for fun and for savings. You can set a monthly budget for fun and see whether or not they can make it.
You can also encourage them to save up for bigger items, like a new bike or a used car. It’s a great way to help them understand the value of saving and the importance of it.
5) Gamify Financial Literacy
The best way to learn any sort of skill is to make it fun. Students often learn better when they get to earn badges and can level up.=
By gamifying financial literacy, you can make it more fun and more engaging. You can use financial literacy games to teach your students the basics, like how to save, how to earn money, and how to spend wisely.
Teaching financial literacy early has many benefits for both your child and for you. It’s never too early to start teaching your child about money, so why not get started today?
Make money management for kids easier and more fun. Kiddie Kredit is an app that will help them keep track of their finances and learn more about saving. Download our app on the App Store to teach your kids more about financial literacy.