The Definitive Guide for Teaching Financial Education to Children

Financial literacy is a thing that you can read from the books. But when it’s time to apply, one can learn by looking at the parents or elders. So it’s the responsibility of parents to practically show the kid about the importance of managing money and how to save it? If we talk about ourselves, how do we learn about Financing? So, from the start, we have to provide our kids with the best skills for a successful life. 

This fast world demands us to equip our kids with everyday skills. That makes them strong towards financial decisions. Like saving money, how to make a budget and investment, etc. From an early age, these concepts can be introduced to them by discussion. It makes them confident about how to spend and when to spend. Read more to get knowledge and strategies for teaching finance to your little ones. 

It might look hard to teach the financing methods to children.  But this article will help you to engage your future superhero in the world of finance!

Why is financial knowledge important for kids?

Financial knowledge makes a kid strong in his financial situations and decisions. If any tough situation comes in life, he will be able to sort things out easily and without panicking. If you tell them about billing, saving, and budgeting from an early age, they will already have an idea of financial situations in the future.  

You will also observe that their spending habit is gradually changing and they are now saving money. Their confidence to make a financial decision and investment power also tends to increase. Many different methods and techniques will help you teach your kid about a better future. 

Financial education activities for kids

Little kids cannot easily understand the lessons of financing. You have to create a strategy to make them learn about it. Activities and practical lessons are better options for them. According to research, many financial lessons should be given to a kid of 7 years of age. What are the activities? How to apply them and how does a kid learn about it? These questions may arise in your mind. But if you follow these strategies, you will be successful in making them learn about many financial techniques. 

Take the first step 

When your kid becomes 3 to 4 years old, tell them the worth of money. What is the power of a coin, let them identify different coins. What can you buy from it according to your needs? Take your kid to the grocery shop and tell them how much an item costs. What can a kid buy from a coin too.

Play games together

Play games with the kids at school and home. Games that have an involvement of money like Monopoly are a great example. It lets your kid get the concepts of financing, budgeting, and planning. Role-play games like shopkeeper and customer also help to develop a sense of shopping and decision-making. 

Pocket money management 

Give your kid an amount of money every month. So they have freedom of wherever they can spend it. Explain to them about needs and how you spend money. So they have a better idea of their needs and when they should spend the money. Also, tell them to save some amount every month to purchase something big. 

Reward program

If your kids help you with house chores, give them some tip money. So they have the idea of getting paid. They have to work in the future to earn money. It will have a great impact on them, that if they make an effort then they will get paid. The sense of hard work also starts developing in them. 

Money-saving toy

From an early age, buy your kid a piggy bank toy. And tell them to put money in it. It will create a habit of saving them. They will do it for fun, but when they get older; they already have the sense to save money in a bank account. That is a big achievement. 

Compare things

Visit different stores with your kid and have a comparison of the price of an item available in different stores. So they have the idea of purchasing items where price and quality is better. Discuss bills and expenses with them, so they have an idea of financial status. And how to manage the finances every month. 

Basic banking knowhow

If your kid understands the basic concepts. Now it’s time to tell them about credit and loans. Like if your kid wants to have something they badly need. Let them borrow some money from you and tell them to give it back from their pocket money every month. Also, visit banks with them and introduce the concept of bank accounts, savings, deposits, and interest, etc. 

Use digital resources 

There are many apps and games online that use financial concepts. Different mind games are available that check your ability to use money or how you save money. Some have quizzes while other games have challenges to come over. Cash Puzzler and Peter Pig’s money counter are really helpful. 

This fusion of financial discussion in daily routine will make your kids into smart decision-makers. These are enjoyable activities that automatically make them learn about finances. Make your kid a financial specialist who will rock the world. These strategies will help you and your kid in many different ways in life. 

Material that helps in educating kids about finances 

Daily routine activities related to financing can easily be performed by parents. But as a teacher, you have some limitations. So along with parents teaching financial education at home. Teachers can also play their role. Like providing the kids with books that enhance their knowledge of financing to the next level. There are many educational ways to teach the kids about Financing.

Books

Find books that cover different financing topics. These books are designed for children so they feel engaged. Topics like saving, interest, budgeting, and investment are described in a very easy and interactive way. A kid can easily understand the concepts through these books. Like Finance 101 for Kids and Rock, Brock and the Savings Shock are very interesting financial education books for children. 

Websites

There are many websites that provide financing courses for little students. Like www.moneytimekids.com is a great example. To meet the growing need for financial knowledge for tour kids, these websites are designed in a way to enhance your kids’ financing knowledge and sharpen their brains. 

Mobile apps and games

The technology world has everything in it. From education to entertainment; you can find whatever you want. Many apps and games are available online that can make your kid learn about finance easily. Games like Stock market games and budget games are good for developing financial skills. Similarly, the Financial Literacy for Kids app is also appreciable. 

These gadgets will really help to teach different concepts of financing to your kid. It also assists them throughout their life to make better financial decisions. Verbally teaching a topic cannot create as much interest in a kid as a creative book or app can work. So apply these techniques in life to make your kid a strong person. 

Age-appropriate financial teachings

You may think that financial education is a boring subject and how you will communicate it to kids. But don’t worry, if you teach them simple and meet their understanding level. You are successful in your tasks. Start from practical lessons, because a kid learns what he sees. Then gradually discuss financing with them according to their mental level. 

Financial education for 2-7years old

At an early age, the mind is fresh and the kid can easily pick a new topic. Tell them about money, how to use it, and where to use it. Give the concepts of spending, saving, and sharing. Activities between different kids should be conducted in school. That can let them know about managing money. Kids should know about earning money through hard work, so they have the right path to follow. 

Financial education for 7-11years old

Kids of this age already have an idea of how to manage money. What you should do is to keep them on the right track. Like if you give them pocket money every month. They should know how they spend it throughout the month. Let them make a budget and they should also save some portion of the amount from the pocket money.

Separating Spending and saving is an important task to do in this age. It will help them throughout their life. Give them the idea of investment too, this will build the habit of saving and then investing it. The main task at this age is wise spending of money. If a kid learns to spend money wisely, then you are successful in teaching him financial education. 

Financial education for 12 to teens

Kids in middle school are at a critical stage because they will become independent and do what they want to do. So teaching them financial education is a big deal. Start from their needs and wants, like what is necessary to purchase and what’s an unnecessary item. Encourage the habit of saving money, so they can buy something big at the end. 

 Introduce your kids to the concept of loans, how banks give loans, and how much interest is applied to them. But if a kid saves money, it will grow and will help him in his hour of need. Check the spending habits of kids and tell them to compare the same item at different stores. Tell them about fraud and scams, so they don’t share personal information with anybody online. 

So if you teach the kid according to his abilities and age, he will not only understand quickly. However, he will learn the financial skills and apply them in his daily routine. 

In this busy and fast world, it is a basic requirement to teach the kids about Financing and money management. If you start it from an early age, you will get 100% response within some years. No hard and fast rules, just play with the kids and teach them financial education side by side. You are able to build wise spending habits in your kid. It is never too late, start now!