How To Teach Kids About Money
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I found a good article about how to teach kids about money.
15 Ways to Teach Kids About Money
by Paul Richard
Introducing Kids to Money
Money gives people — both young and old — decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend. Everyday spending decisions can have a far more negative impact on children’s financial futures than any investment decisions they may ever make. Here are 15 simple ways to help educate children about personal finance and managing money:
- As soon as children can count, introduce them to money. Take an active role in providing them with information. Observation and repetition are two important ways children learn.
- Communicate with children as they grow about your values concerning money — how to save it, how to make it grow, and most importantly, how to spend it wisely.
- Help children learn the differences between needs, wants, and wishes. This will prepare them for making good spending decisions in the future.
- Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven’t set. Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.
- Introduce children to the value of saving versus spending. Explain and demonstrate the concept of earning interest income on savings. Consider paying interest on money children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.
You can read the other tips here.

All children demand stories, be it eating time, a boring travel journey and surely it is a bed ritual. If you have paucity of time juggling with chores, then invest in some interesting fairy tale bed time story books. Children’s literature abounds with millions of elves, fairy, goblin, monster and sea devil stories. Interesting colour pictures, expressions and touch-feel books are available in the market. Rewarding the child through books is a valuable idea.
The next week is exciting for both of you. Give them a crayon and demonstrate how to hold the same. Take a paper and scribble, doodle or draw a huge circle. They sure are amazed at the wonder. Encourage them to mimic the activity. Many kids may not be particularly fond of your coloring themes and for starters they may shred the paper or want to break the crayon. Use safe colors and please supervise to avoid accidental swallowing.
