In my house, with kids ranging from 8 to 21 years old, I sometimes notice they feel they deserve things without understanding the need to earn money. I’ve always been firm about not impulsively buying things for them. They’re aware of this, and usually, they don’t ask for much. The exception is our trips to Publix – that’s when the pleas for those delicious deli potato wedges start!
Now, with my eldest working full-time, she’s beginning to grasp the concept of money, though she still relies on me for some of the grown-up expenses like health and dental insurance. Every day brings new chances for my kids to learn about money. They’re growing up, from saving their first pennies to cashing their first paychecks. So, let’s take a moment to sit back and discuss how we can help our children, young and old, learn to handle their money wisely.
Starting Young with Piggy Banks
Remember those cute little piggy banks? They’re not just for decoration! When your kids are little, a piggy bank is a great tool for teaching the basics of saving. Every time they find a coin, or you give them a little something for helping out, encourage them to pop it into their piggy bank. It’s like a game – watching the piggy bank get fuller and fuller. And when it’s time to open it, they can see how saving little by little adds up.
Learning Through Grocery Shopping
Grocery shopping can be a chore, but it’s also a perfect opportunity to teach your kiddos about money. Give them a small budget and a mini-list for their own shopping. Let them figure out what they can buy with the amount they have. This helps them understand the value of money and the cost of things. Plus, it’s a fun way to get them involved in choosing healthy snacks!
Setting Up a Lemonade Stand
What’s more fun than running your own lemonade stand? This is classic childhood fun, but it’s also a sneaky way to teach about earning money, handling cash, and even some basic business skills. Help them set up, make the lemonade, and watch them learn as they sell each cup. It’s a hands-on experience that’s both educational and super enjoyable.
Playing Money Games
There are tons of games out there that can help your kids learn about money. Board games like Monopoly or Life are great for older kids. For the little ones, try simple counting games with play money. These games make learning about money fun and interactive.
Saving for Something Special
Here’s a big one: teaching kids to save for something they really want. Whether it’s a new toy, a book, or a special outing, helping them set a goal and save towards it can be incredibly rewarding. It teaches patience, goal setting, and the satisfaction of earning something they’ve worked hard for.
The ‘Needs vs Wants’ Talk
This one can be a bit tricky, but it’s crucial. Helping kids understand the difference between ‘needs’ (things we have to have, like food and shelter) and ‘wants’ (things that are nice to have, but not essential) is key. A simple way to do this is by discussing choices while shopping. For example, explain why you’re buying certain groceries but skipping the extra snacks.
Pocket Money and Chores
Giving your kids pocket money in exchange for chores can be a great way to teach responsibility and the value of hard work. It doesn’t have to be much – just enough to give them a sense of earning and saving. It’s also a great way to start conversations about saving and spending wisely.
Being a Money Role Model
Remember, our kids are always watching and learning from us. Showing them how you manage money, like budgeting for household expenses or saving for a family vacation, can be a powerful lesson. Talk to them about what you’re doing and why – make it a family discussion.
Read: Easy Ways for Parents to Start Saving Gas and Money
Understanding the Value of Hard Work
It’s great when kids understand that money doesn’t just appear; it’s earned. Encourage older kids to take on small jobs, like babysitting, dog walking, or helping neighbors. This not only helps them earn their own money but also teaches responsibility and the value of hard work.
Budgeting Basics
Budgeting is a key skill. Start simple. If they have a weekly allowance, help them create a basic budget. Show them how to set aside portions for savings, spending, and giving. This could be as simple as having three jars or envelopes for each purpose. It’s a visual and practical way of understanding budgeting.
Real-Life Financial Decisions
Involve your kids in some family financial decisions. This could be as simple as planning a family outing with a set budget. Discuss the costs of activities, food, and transportation. Let them help make decisions on what to do within the budget. It’s a real-world application of budgeting and decision-making.
Understanding Banks and Interest
For older kids, introduce the concept of banks and interest. Explain how saving money in a bank can earn them interest, making their savings grow. Maybe even take a trip to a local bank and have them open their first savings account. It’s exciting for them and a big step towards financial maturity.
Credit Cards and Loans
This is a big one. Teach them early about credit cards and loans – that they’re not ‘free money.’ Explain interest rates and the importance of paying back what you borrow on time. Maybe illustrate this with a small loan to them, with a simple interest rate, to teach them how interest accumulates over time.
Charity and Giving
Another vital aspect of financial literacy is understanding the importance of giving. Encourage them to set aside a portion of their money for charity. Help them pick a cause they care about. This teaches empathy, compassion, and the joy of helping others.
Entrepreneurial Spirit
If your kid shows an interest, nurture their entrepreneurial spirit. Encourage them to come up with a business idea, plan it out, and execute it. It could be as simple as a bake sale, a craft project, or a small online business. This can teach them about profit, loss, and business basics.
Using Technology
In today’s world, there are numerous apps and online tools designed to help kids learn about money management. From virtual piggy banks to budgeting apps, these tools make learning about money interactive and in tune with the digital age.
Teaching About Investments
For the really ambitious, you can even start teaching older kids about investments. Simple concepts like stocks and bonds can be introduced. There are even kid-friendly investment apps and games that can make this a fun learning process.
Celebrating Financial Milestones
Last but not least, celebrate their financial achievements. Whether it’s saving up for a big purchase, contributing to a charity, or successfully running a small business venture, acknowledging their efforts reinforces positive financial habits.
Preparing Your 18-Year-Old for Real World Expenses
As a mom with an 18-year-old daughter, I often think about the expenses she’s going to face now that she’s graduated from high school. This new phase in her life isn’t just a milestone for her, but also a time for us as parents to shift our guidance. We’re moving from steering her through school life to helping her understand the financial realities of adulthood. It’s a time filled with new challenges and opportunities for learning, both for her and for us.
Imagine your child, diploma in hand, stepping into the world of adult responsibilities. They might be thinking about college, a job, or maybe taking a gap year. But with this new freedom comes new costs. And wow, do those add up! We’re talking everything from rent and groceries to phone bills and maybe even student loans.
Based on what I’ve learned, the monthly costs for an 18-year-old can range from about $1,250 to a whopping $2,600. That’s quite the range, right? Let’s break it down a bit. They might need to pay rent (if they’re not living at home), buy food (no more just raiding the fridge), get around town, pay for utilities like electricity and water, and don’t forget about insurance. Then there’s their education – maybe college fees or paying back student loans. Healthcare’s another big one, plus all those personal expenses, like clothes or going out with friends. And, of course, we can’t forget about saving for the future.
Now, every family and every 18-year-old’s situation is different. Some might have more expenses, some less. The key is to start talking about these things early. I’ve found that sitting down with my kids and going over what costs they might expect really helps. It’s not just about scaring them with bills, but empowering them to plan and manage their money.
Plus, it’s a great way to bond with your almost-adult kid. You can share your own stories (like that time you had to learn to budget for groceries) and laugh about the learning curves. It’s all about preparing them to make smart choices and handle their finances like the awesome young adults they’re becoming.
So, moms, while it might seem a bit overwhelming to think about all these expenses, it’s also a proud moment for us. We’re helping our kids grow up and get ready for the real world. And hey, they might even start appreciating all the things we do a bit more!
Final Thoughts On Teaching Your Kids About Money
Educating our kids about money is a journey that keeps going. It’s all about creating a strong foundation for wise money management in the future. By making these lessons both fun and practical, and incorporating them into daily life, we’re preparing them for a financially healthy future.
