13 Easy ​and Fun ​Ways to Teach Your Kids About Money

You want your kids to be great at managing money, but where do you begin? In the old days, our parents used the lemonade stand. But is it still relevant today? Here are thirteen easy and fun ways to teach them about money.

Start with the concept of money

The best way to start about this is using pennies. Explain to them the value in a penny and how they work. When shopping, you can let them pay the cashier and take the change.

An open Jar

Some people recommend that you use a piggy bank to let your kids learn. However, we recommend using a normal transparent jar, which will let them see their money grow. Today, they have $10, tomorrow, $30, and the following day $50. Talk about their progress and make it look like a big deal.

Show them how stuff costs money

Instead of telling the kid how much an item costs, let them take the money from the jar and pay for it. This simple lesson will be worth more than a 2-hour lecture about money.

Set an example

Kids are very observant, and their memory is always sharp. They will remember most things you do. Therefore, always strive to set a good example to them about money. Let them see you make your budget and your shopping lists. Let them see you work hard, and when you go shopping, let them see you stick to your planned shopping lists. When they get older, they will surely remember everything you did.

Use an Allowance

In their early age, kids will always want you to buy for them everything that pleases their eyes. They will want the latest iPhone, the newest toy from Disney, and the colorful cakes. You should never do this. Instead, you can use an allowance model, which awards them with cash they can use to buy the items they want.

Savings Account

In their early age, you should open for them a savings account. In this account, they will deposit the funds they get from their allowances. To motivate them to do better, you can match every dollar they save with a dollar. Then, every quarter, you can have a review of the account and explain to them the concept of interest rates.

Let them earn money

A perfect way to install financial discipline on kids is to let them work for the money. Let them wash your car, clean the house, and even work in summer jobs. Doing this will show them the importance of working and also, boost their creativity. A billionaire like Mark Cuban started his entrepreneurial journey early in life by delivering newspapers.

A lemonade stand

The good old lemonade stand never runs out of fashion. Its concept is so simple, yet so powerful when you want your kids to learn about entrepreneurship. It enables them to know how to source raw materials, make products, price them, and market them to potential customers.

Shark Tank

If you want your kids to be entrepreneurs, I recommend that you let them watch an entrepreneurship show like Shark Tank. In the show, entrepreneurs pitch their products and services to investors. When they like a company, they invest their funds into it. Watching all episodes of Shark Tank is similar to taking a full university course on entrepreneurship.

Encourage Charitable Giving

Introduce to them the concept of charitable giving early in life. Give them examples of the richest people like Bill Gates and how giving out money has helped them become happier and more successful.

Buy Business Related Magazines

Magazines like Forbes, Fortune, Fast Company, and Kiplinger’s offer excellent lessons on money. These magazines are known to cover diverse topics like listings of the wealthiest people, how they spend their money and their advice to young people. As they grow up, they’ll want to be like these people. The magazines have excellent graphics which your kids will find interesting.

Teach them to Invest

Most successful investors started investing at a very early age. Warren Buffet started at 11 while Ken Griffin started at 15. Today, an excellent way to start is to open for them a small account with a company like Robinhood that charges no transaction fees for investing. I also recommend that you have your kids watch this short and interesting video by billionaire Bill Ackman who gives a snapshot of everything to do with finance.

Finance Events

Many organizations and churches organize various events where they teach kids about finances. Taking your kids to these events will empower them to know more about money and how to use theirs well. This will also help improve their networking skills because it will help them meet and interact with their peers.
No parent wants to have a spoiled kid. Following these simple tricks will help you nurture them to be more responsible about money.

Achieving all this will not be easy. It will cost you an investment of time, but it will be worth it. Remember, if you don’t train your kids about money, another person will, and that’s not a risk you are prepared to take.