Money activities can give your child a good foundation to establish good money habits for life. Teaching kids about money matters is extremely important for their personal development.
Money activities for kids: Infographic
Check out the infographic below from Fat Wallet that explores fun and simple ways to start teaching your kids about finance.
Are you teaching your kid about money matters?
“As a society in Britain, we don’t talk about money – it’s a sort of massive taboo,” says clinical psychologist Dr Elizabeth Kilbey. “Unlike other parts of parenthood, there is no playground chatter about the topic and, as a result, parents revert to what they know – passing their habits down to children.”
Many adults avoid talking to kids about money, because they lack confidence in how they’ve handled their own finances.
However, you do not have to be a financial rock star with a perfect track record to teach your kid personal finance basics and get the money conversation started.
Below are 3 important money lessons to teach your kids:
You may have to wait to buy something you want (Ages 3-5):
Kids need to learn that if they really want something, they should wait and save to buy it. E.g. When your child is queuing, say, to go on the swings, talk about how important it is to learn to wait for what he or she wants.
You need to make choices about how to spend money (Ages 6-10):
Keep up with activities like the piggy bank, and also begin to engage your child in more adult financial decision-making. E.g. When you’re shopping, talk about how you’re making your financial decisions as a grown-up, asking questions like, “Is this something we really, really need?
The sooner you save, the faster your money can grow from compound interest (Ages 11-13):
Describe compound interest using specific numbers, because research shows this is more effective than describing it in the abstract, says Kobliner. E.g. “If you set aside $100 every year starting at age 14, you’d have $23,000 by age 65, but if you start at age 35, you’ll only have $7,000 by age 65.”