by Emily Hechler 
You’d be surprised at how much kids learn just by observing you. Simple tasks like tying your shoe or vacuuming the floor are easier to pick up, while other lessons require more intentional and on-going effort to teach. Teaching kids about money is one of these things.
You might feel nervous about teaching your kids about money, especially if you’re not confident in how you manage your own finances. Maybe you and your partner argue about money and your child wants to avoid the topic. Fortunately, we have fun and effective ways to teach your children about money, helping them build solid financial habits from an early age.
- Use a clear jar for saving. When kids are little, if they don’t see it, it doesn’t exist. Littles can easily forget about the money they put in their piggy bank because they can’t see inside of it. Using a clear jar instead makes it easy for kids to keep an eye on their money. It allows them to literally watch their money grow as more is added to the jar and the pile climbs to the top.
- Use play money. When I was a kid, I loved playing store. Take turns being the cashier and shopper with your child. When they start to understand basic math, you can charge specific prices for the items in your play store and require your kid to give you the correct change. While this seems simple, it’s a harmless way to demonstrate real scenarios.
- Pay with cash. While using a debit card is often more convenient, try using cash when your child is around. Kids can easily assume that swiping a card means you just get what you want without realizing what happens behind the scenes—like the money being taken from your account or the consequences of overdrawing. Paying with cash gives them a tangible sense of how money works, allowing them to witness “real money” in action and helping them better understand the connection between spending and having enough funds.
- Have kids earn their allowance. Ultimately, you know what allowance strategy works best for your family. If you can, have your kids do chores around the house in exchange for their allowance. Like in the real world, money has to be earned. When your child receives money as a gift in the future, it will feel much more meaningful because they’ll understand the effort it takes to earn it.
- Play Monopoly. If you have an hour or so to spare, have a game night with your kids and play Monopoly. In the game, your kids will have to buy their properties and pay rent. It’s a lot of earning and a lot of spending. This game can help show kids the long effects that their decisions about money can make. Fortunately, there are no real-life consequences to losing the game. You just don’t get bragging rights.
- Avoid impulse buys. Impulsive shopping parents create impulsive shopping kids. Like I already said, kids learn through observing. Take a list to the store with you so your kids can see that you don’t buy what you don’t need. If your child has their own money with them and they want to buy something at the store, have them wait until their next visit. Chances are, it’s an impulsive decision. (Unless you’ve heard them talking about it frequently at home.) If you come back a few days later and they don’t remember to buy it, then that’s money they just saved. However, if they do buy it, hype up the anticipation and how much fun it can be waiting to make their dream purchase.
- Visit Alltru. Next time you visit the credit union, bring your kids along! If you have a jar of coins, let your child see how the Coinstar machine works. It’s a great way to show them how small amounts of money can add up to something more substantial that can be used to buy something nicer. If your child is 12 or younger, you can help them open a CUbby Savings account with just a $1 deposit. Plus, they can get a special prize for deposits over $10 and on their birthday.
If you get excited about saving money, chances are your kids will too. Learning about money with hands-on and hands-off methods like these can make a large impact on your kid’s view of money. Being intentional about teaching your kids can allow for great quality time too. Have fun!
