5 Ways to Teach Your Children About Money

Teaching your children about money is one of the most valuable life lessons you can give to them. Learning to manage money, budget, and save money are vital skills that children will need to put into practice when they reach adulthood. But for some strange reason, teaching kids about finances isn’t something that’s regularly done in school, so it’s really important that we do this at home. There are lots of really simple ways you can do this without turning teaching about money into a lecture. Here are five ways to teach your children about money.

1. Involve them when you’re shopping

One of the best ways that children can learn about the value of money is by being involved in how to spend it. When I was a child, money was never talked about, and as an adult, I quickly got into debt as I just didn’t know how to manage my money.

When you’re out shopping, discuss what you’re buying with them. Talk about the price difference between branded products and supermarket own-brands and how much money you can save by buying the cheaper option.

2. Play money games

As a Mum of three, I’ve tried various different ways to help them to learn about money, and the one they enjoy the most is playing money games. There are lots of different ways you can do this, either with physical games or by using free online games. My children have all preferred playing online games, they enjoy being on the computer and I get the added bonus that they’re learning whilst they’re playing.

Mortgage Calculator have some fantastic free money games on their website. There are a range of different games to suit different ages. My seven-year-old son particularly likes the Lego City Build and Protect game. In this game, you have to earn coins by collecting taxes. You can use your coins to find new lego pieces to build new places such as an aquarium and a prison. Every new building earns more money in taxes, but you have to spend your coins in order to build the city.

3. Get them a money box

Handling money is a great way for children to learn how to manage it. Giving your child a money box will allow them to add cash to it and watch the amount adding up. It also helps to teach them that they need to keep their money in a safe place.

4. Involve them in day-to-day costs

Talk to your children about how much things cost. Don’t be afraid to let them see how expensive things are as this is a great way to teach them about the value of money. Talk about how much it costs to heat the car, and let them tag along when you fill the car up with fuel. Whilst these are everyday expenses for us, we don’t always think about sharing these with our children.

5. Let them plan an activity with a budget

When you’re planning an activity, get the children involved with planning it. Set a budget for the day and talk about what you’ll do to stay within that budget. You could pack a picnic to save money on food, or book tickets in advance to save paying over the odds on same-day tickets.

*This is a collaborative post.