Teaching Kids about Money

Teaching kids about money is one of the most advantageous things you can do for their future.

As kids, we were often informed that money is not something that grows on trees. Many of us may have received a small allowance for our contributions to the household.

Others may have received financial rewards for academic achievements.

Several of us did work for our grandparents, neighbors, and others in our community to earn a little cash.

The question is, how many of us had parents or guardians that took the time to provide us with important lessons about money and other forms of financial literacy?

According to a recent study, 1 out of every 4 adults that have children under the age of 18 claim that their parents never provided them with these critical lessons.

In most of these cases, those adults will not go on to pass money lessons on to their children; however, this is some of the most important knowledge that a child should possess. By teaching kids about money and finances now, they will reap many rewards in the future.

Start with Where Money DOES Come From

So, we all know that money does not grow on the trees. How we wish it did! Now that children know where money does not come from, it is time to teach them where it DOES come from.

It does not magically appear in purses and wallets or even in banks.

It comes from working. Yes, children must be taught that most of the money that they will obtain in their lifetime comes from earning it by working.

There is the rare case where someone may gift you money for a birthday or a holiday or the case where you may sell something to make money, but – generally speaking – money has to be earned.

If you work, you obtain money. If you fail to work, you get nothing. The relationship between working and getting money has to be instilled at a very young age.

Including Children in Spending

The next method to teaching kids about money is to include them when it comes to spending.

It does not matter if you are paying bills, purchasing groceries, buying gifts, or making a large purchase, include your child. In taking this measure, you can include them in on the creation of budgets, the importance of having a savings account, teach them about emergency funds, and educate them on how banks and online payment systems work.

This is all very important information that they should become familiar with.

Failure to connect money to these various financial tasks and obligations at an early age could result in the issues of debt, low credit scores, and financial hardships being completely avoided.

Entertain and Education

The next method for teaching kids about money is to entertain them! You may do this by playing with play money and setting up different situations, playing board games that involve the use of “game” money, or by playing online games.

Additionally, there are many online educational resources that will help kids learn about money.

Examples include the Money Smart Curriculum, Money as You Grow program, NCUA games, and the U.S Mint activities.

By teaching kids about money today, you are preparing them for a world of financial freedom tomorrow.

If you have any money questions or would like assistance setting up an account for your child once they become an adult, you may contact us today by visiting one of our many locations: https://somervillebank.net/locations/