Monday, 6 July 2009 11:31
by
Jacki
Most children learn about money through school and the media. The majority of schools are very busy with required curriculum and many times financial literacy is either briefly covered or not covered at all. The media teaches children that their worth is based on the amount of money they have. As a parent, it is very important to instill a sound sense of money in your children. Even if you struggle with money, it is important that you set an example for your children and teach them not to make the same mistakes that you may have.
Here are some basic concepts to help you get started teaching your children about money. This is an ongoing process and should not be a onetime activity.
Money Counting
A very easy way to start teaching your children about money at a very early age is to count money with them. Have them start saving money they get from you or grandparents in a piggy bank (or moonjar explained below). Count the money as your child places it in the piggy bank. When the bank is full, count all the money and take it to the credit union or bank to deposit into their account.
Money Math
The next step in teaching children about money is money math. There are several websites that can help you with this, or you can ask your child’s school if they have any material that covers money math. Or, if you are a do-it-yourselfer, you can just come up with money math on your own. This is as basic as an equation like: 1 dollar + 1 nickel + 2 pennies = $1.07 on paper and then moving to having them count actual money like the money saved in their piggy bank.
Money Concepts
As mentioned above, FORUM gives moonjars to children when they open an account. The moonjar teaches children the 3 basic principles of money: save, spend, and share. The moonjar has a slot for each of the 3 concepts, and the children can deposit money into each on a regular basis. When your children are putting money into the moonjar explain the importance of each of the concepts to them. What are they saving for? What do they want to spend their money on? Where or who will they share their money with?
Money Moments
The best way to teach older children and teenagers about money is to have them sit with you while you pay bills or balance your checkbook. You may feel nervous about sharing your finances with your children, but don’t be. This is something they will eventually have to deal with themselves and will give them a greater understanding of how far a paycheck will go and how much things like mortgages, car loans, utilities, etc. really cost.
Here’s a short video about teaching kids about money as well: