Encouraging positive and responsible money habits in your children's minds is arguably one of life's most important lessons. The sooner children start learning about the "value of a dollar," the better. However, kids don't have to know how to count to be introduced to and taught about money. Luckily, with today's technology, there are many ways to make learning about money fun for kids of any age. Read on for some quick tips to make learning about money fun.
1) Use Cash Yourself
Try not using a credit or debit card on everyday purchases. By allowing your children to see you use cash, they will begin to understand the value and purpose of money. Other great ways to introduce your child to money is to take them to an ATM so they can watch you withdraw money, or let them deposit coins in a parking meter.
2) Give Them a Piggy Bank
Children's piggy banks come in a variety of colors and designs. Some even have their favorite movie character or superhero. A piggy bank will teach children to put away money for saving, and that this savings can be used to purchase an item or toy they really want. There is also a newer "modern" piggy bank that has multiple slots that divide money into categories such as save, spend, invest and donate.
3) Go Online
The Internet is full of age specific money games for kids. T. Rowe Price teamed up with Disney to create an interactive, online game called “The Great Piggy Bank Adventure.” This game teaches age appropriate financial lessons, such as the importance of saving money with a specific goal, interest, and financial distractions.
4) Play Games
Board games are also an easy and non-invasive way to talk about money. Board games, such as Monopoly, The Game of Life, and Payday, help children develop and master their financial management skills.
5) Give Them an Allowance
There’s a strong argument that an allowance is the best way to teach a child about handling financial responsibility. An allowance reinforces the lessons that money is limited (even yours) and it must be earned. Use allowances to combat the “I want this” during a Target trip, and let your child know that they need to bring their own money from their allowance if they want to buy something.
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