Teaching Kindergartners about money at a young age is essential. Doing this as early as possible ensures that they will be great money managers. Most teens don’t even know enough about money. Lack of a money IQ leads to adults that get taken advantage of.
As a parent is it essential to note that spending habits are formed by the time one is able to read. This becomes a good enough reason for parents to take money management lessons serious towards their children
To start them off on this financial management adventure supply your kindergartener with a piggy bank. Help them understand the concept of a savings account just like the one you own and how resourceful it is. Urge them to ask as many questions as possible.
At the age of 4 or 5, the days of learning to read and write, there are plenty of opportunities to teach them the value of money when you going to the mall. Take them along and get them acquainted with the currencies and money terms. Show them that just because a penny is shiny does not mean it’s more valuable than paper money.
At the time of your conversations regarding money, introduce the 3 concepts of need, want, and wish. These are great discussion points on your trips to the shopping mall
For children around the ages of 4 or 5, regularly bring up the 3 terms want, need, and wish especially on trips to the grocery store. Show them the meaning of each one and their hierarchy of importance. Instill a basic understanding that needs are more important than wants and wishes and that they should always come first.
The quickest way to make them appreciate money is by getting them actively involved with the shopping. Get them a notebook to jot down the prices of the items they want as well as the items they need. This will enable them to differentiate between the two and equip them with budgeting skills
The next step after knowing the prices of items. Have them create a list with priorities coming first then wishes and wants following. Discuss the reasons for laying priorities before wants.
Once they have created their list. Get them started on some house chores such as gardening, helping out with tidying the home, setting up the dinner table, and much more. Create a system for tracking progress and rewards. Sticky notes on the fridge work fine. By the time they reach their early teen years they will be well knowledgeable on budgeting. You are assured as well that your young one is capable of budgeting and saving for themselves when they start getting allowances
Another addition to their piggy bank is a bank for needs. In this piggy bank allocate 10% of their cash to needs such as hair cuts, new school supplies, and clothing. When the day for shopping for essentials arrives have them give you the money to contribute to buying the items they need.
Teaching them to Give
Trust me none of us want our children to grow up and become greedy and stingy with the money. Have them donate a portion of savings to charity. By doing so they’ll understand that money is not only for buying things for themselves but also it’s a resource which can be used to help others in need.
Another fun idea which I love doing during my children’s holidays is holding bake sales. It’s not about the bake sale but more to do with teaching them to brainstorm and come up with great ideas to raise money for charity and earning money for their wishlist. The lesson here is that money is earned from hard work and determination not just simply given.
Allow them to set a revenue goal and pricing for the cakes. Set them the challenge of counting the money as well as handling it. This certainly gets them to know the value of money.
Decisions Decisions Decisions
Most times when our children go shopping they come across some toy or item that blows their mind and they can’t resist asking to have it instantly. As adults, we know that cool things come at a price than the less interesting items.
A great way to teach kindergartners about money is by giving them a tough decision to make, create a dilemma for them to solve. Tell them that if they really need it they’ll have to spend all their savings on one toy and that will mean the rest of the items on the wishlist will not be bought. Then present them with a better option of purchasing the item at a lower price elsewhere. This teaches them to have the patience for what they want.
Related: Dealing with 2-Year Olds
Finally, get them to use a notebook to jot down the prices of the items they buy and compare the price with the previous toy they wanted. They will learn that bargaining is sometimes a greater resource because you can get more for less.
Some fun activities to incorporate into their learning is playing some pretend shopping. Be a pretend store attendant who also helps the customer, in this case, your young one. To pick the best product for the money they have. Make sure to engage some challenges for them to figure out on their own. Such as making some products more expensive than others and telling the customer the reason for its costly price. Help them to shop with the little they have this will surely make them understand the pricing of goods and how everyday buying and selling is done.
Teaching Kindergartners about money won’t be easy, but it will be worth it when they turn into mature financially responsible adults.