ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Teach Kids About Money - 10 Fun Tips

Updated on July 20, 2013

One of the challenges many parents face is teaching kids about money. Some are even scared to start a conversation involving money with their kids. However, imparting this piece of knowledge is very essential to children. By doing this, you are teaching your kids to be good decision makers and become responsible adults.

Teaching kids about money is not as daunting a task as you think. It can even be fun - a lot of fun, in fact. Remember, the sooner you teach your child about money, the better. To help you start with educating your child about money management, here are simple ways on how to teach kids about money.


10 Fun Ways to Teach Kids About Money

1. Play games.

Kids love games. You can use this to your advantage by playing board games with your kids which involve money. You can try out Monopoly, Thrive Time and Beat Debt. This is a sure fun way to teach kids about money.

2. Involve your kids.

Your weekly trip to the grocery store is a great opportunity to teach your kids about money. You can tell your kids what your budget is and let them help you buy things under that set amount. If your child is old enough, you can give him the calculator and let him do the calculations. This is a great way to teach your kids about money on a more consistent basis.

3. Give them allowance.

Experience is the best teacher. Make sure that you let your kids experience money. Also let them understand that money is hard-earned. You can reward your kids whenever they finish a chore or get high grades in school. Make it a point that you give money in denominations that encourage saving. This means that instead of giving $5, give 5 1-dollar bills.

Source

4. Teach the value of saving.

When your kids already have money on their hands, they may tend to think of using all of it to purchase their favorite foods and toys. While rewarding themselves for the money they have earned is important, it is better to teach your kids that part of their allowance should always be kept as savings. Introduce to them the good old piggy bank. Experts also suggest giving your kids three different containers for their money – one for saving, one for spending, and one for donating. Remember to guide your kids on how to divide their allowance amongst the containers.

5. Open a savings account.

The next time you go to the bank, take your child with you and open her own savings account. Explain to her that leaving money in the bank makes it grow through interest. This is also a great way to let your child learn about the basics of banking.

6. Teach your kids how to evaluate advertisements.

Kids easily give in to the advertisements they see everywhere. Even adults often fall prey to advertisements for products. It is important to teach your kids that not all they see on TV and print ads are worth spending their money on. Teach them how to evaluate products first before buying. Also tell them that there may be alternatives which offer the same quality but at a cheaper price.

Source

7. Explain ATM and credit cards.

Kids might think that money just comes from a machine and that you can pay your bills just by using a card. Explain to them that ATM is like their piggy banks; you are taking money from your own account and that you worked hard for that money. Emphasize that it is not free money. When paying with a credit card, explain to them how credit cards work. Credit cards can be very troublesome if used incorrectly so remind your child that using a credit card for all their purchases is not a wise idea.

8. Allow them to make decisions.

It can be frustrating when your kids do not follow your advice. But it is important to let them set their own financial goals and make decisions by themselves. Sometimes, committing mistakes is the key to understanding financial concepts. As parents, just remember to be there to guide them always.

9. Be a role model.

As parents, you should always lead by example. When you make wise decisions, your kids emulate you. Make sure that you do all of the things you teach to them. Always be reasonable with your purchases.

10. Teach generosity.

Remind your kids that money is not everything in this world. Sharing their blessings to less fortunate people is important. You can also teach them to donate to charities and churches. Teach them about frugality and to appreciate what they have. Perhaps this is the best lesson you could give when you teach your kids about money.

Comments

    0 of 8192 characters used
    Post Comment

    • Carson McQueen profile imageAUTHOR

      Carson McQueen 

      5 years ago from Philippines

      I haven't heard of that game, talfonso. I hope this hub inspires more ideas about money management for kids. Thanks for reading!

    • talfonso profile image

      talfonso 

      5 years ago from Tampa Bay, FL

      These tips on teaching kids on money are helpful! Have you heard of the old PC game MONEY TOWN? It really got me to think playing it in school and it had memorable characters and catchy songs (such as the theme song, which goes, "Money, Money Town..."). And I like using the game of Monopoly to teach dollars and sense!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)