In the display, on the Internet, simply everywhere: great things to buy. Children discover the joy of consumption at a very early age and inevitably encounter the subject of money. The fact that this does not grow on trees is not a sufficient explanation. In fact, the basic principles of the world of finance are not so easy to teach.
Fortunately, there are a variety of games, books, exercises, and videos with which children can learn how to handle money for the first time and really have fun doing it! (My book on financial literacy for children will be published soon.) Combined with my tips, there’s nothing standing in the way of financial education.
This is how I would do it (#mytipsforyou)
1. Talk about money
It may sound mundane, but many parents still think that money is not something you talk about. (Where did the culture of not discussing money start?) Yet talking is very important if children are to learn to manage money. It’s best to bring up the subject on your own, rather than waiting for your child to ask a question.
2. Your own experience with allowance
From the time your child starts school, you should start addressing the issue of allowance. It is the first, regular income that teaches children how to manage money. Even with small amounts each week, children can learn how much they can buy with this money.
3. Learning to save with the piggy bank
The piggy bank teaches children that coins and bills are kept in a special place because they are valuable. This allows children to internalize the principle that they can only fulfill larger consumer desires if they don’t spend their money right away. (My daughter’s eyes always sparkle when I give her a coin to put in her piggy bank)
4. Be a role model
Your behavior directly influences your child’s behavior. So, to help your child learn responsible money management, set a good example. The more wasteful you are, the harder it will be for your child to be careful with their money.
Bonus: Suggestions on how to teach your children handling money in a playful way
We play shopping (4 to 7 years)
How much are the apples and is there enough money for tomatoes? The goal of this grocery store board game is to store skillfully by comparing prices. In this way, children become familiar with the buying process in the supermarket and learn how to handle goods and money. At the same time, they understand that money is a scarce resource.
Insider tip: Of course, you can also play Grocery store without buying a board game. Especially with children younger than 4 years old, a “do-as-you-go” game with play money and a store, perhaps even homemade, is a lot of fun!
Monopoly Junior (from 5 years)
The classic game Monopoly is also available in a child-friendly version. The game pieces are cute animals, there are sweets or zoo visits to buy, and the amounts of money are also manageable. Of course, the junior version does not include running up debts. To understand the construct of debt, there is still enough time and a good reason to buy a new version of Monopoly.
Life practice Domino (School age or younger)
As with classic dominoes, the goal of this card game is to match like with like. In this case, an amount of money (e.g., $5) with the matching illustration of coins or bills. The game was designed for school children up to 6th grade with special needs, but it is also great for younger children.
Here is an article that might also be interesting for you: Five wonderful games to teach your children Financial Literacy
