Teaching Kids About Money, Part 2

In Teaching Kids About Money, Part 1, we laid a foundation about beginning to help your children think about money -- immediate and delayed gratification, spending, and generosity. In Part 2, we set a few more helpful concepts in place before giving some practical games for teaching about money in Part 3.

Once your children start getting the ideas introduced in Part 1, you can introduce them to budgeting: allotting some of their money to different categories (charitable giving, saving, food, etc.). This is an important value to plant and nurture. 

In regards to spending what you have budgeted together, show the child how much frivolous spending adds up. Teach them to give up little things: a coffee here, a soda there, a Dollar Tree treat here and there. Physically collect the money that these little things would have cost so your children can see how much money they could have to work with if they control their spending and save.

Dream big. Talk with your kids about long-term goals for their saving. For example, if your family values travel and cultural experiences, bring a book about another country home from the library. Say, "We could save and go there!" Figure out what your family values, and choose not to spend on little things. 

Teaching these things in the safety of your own home is vital. Do it there before the children get out amongst all the mixed messages vying for their money. Talk about advertising. Talk about credit cards and not getting into debt. Talk about saving even when bombarded with messages of "Buy now!" "Buy me!" 

Whatever value you try to instill, remember there is a foundation for every value system out there.

 

Recommended Reading: 

Teaching Children Values, by Richard and Linda Eyre. This also includes games to help.

 

Photo Credit: Family Treasures cc