Nearly half of the US population do not have any retirement savings at all. Our children’s financial future depends on what they learn today. Here is a tip on how to help children the understand the importance of retirement savings.
Around the age of 6, the children start learning addition and start observing their parents making financial decisions, especially about toys, groceries, and treats. Age 6 is a good time to introduce a real-time example of how a simple math skill (addition) can be used in real world. This simple and fun activity will help the children in becoming more confident in math and handling money.
Kids always surprise you with how much they learn about money from observation. What they don’t learn from their parents, they learn from observing others. However, the adults in a kid’s life do not always make the best role models in financial behavior. So, it is important to talk to kids about money and do it frequently. Kids as young as 3-years old are smart enough to understand basic concepts such as “needs vs wants” and that coins have different shapes. The first step is to think about what everyday topics and activities can be opportunities about money lessons.
One of the most valuable and practical skills you can teach your kids and you don’t need to be a financial wiz to do that. You can start by teaching them about counting change, then adding bills. Playing money games with kids is going to be awesome. You will actively engage them in conversations about money and help answer a lot of their questions. This article provides some fun pretend games you can play with your children to make learning about money fun.
For Ages 4+
Halloween is a great opportunity to teach your kids some important lessons about money management. This halloween, teach your kids three fundamental skills related to money management: Delayed gratification, negotiation and giving for a good cause.
Let’s get this straight – gambling is neither an investment nor a way to earn a living. From an early age, the children need to understand that indulging in any form of gambling like betting or lottery etc. is a bad idea. Just talking to them about this may not suffice. Here are some practical methods you can use to teach them the dangers of gambling.
For Ages 8+
A simple and fun activity to teach kids about counting money.
While teaching kids about money, most parents ignore the fact that the money must be invested so it can grow. Tips on growing money is one of the most important lessons in a kids life because the kids seldom experience or learn this on their own.
Single player (Parents play with or against the children): Multiple players (Kids play against each other):
Around age 4, kids start learning that money can be used to exchange goods. They watch parents give money to buy products. This activity introduces them to concept of “names” and “values” of coins.