Raising Financially Smart Children: Fun ways to teach personal finance!

Hey parents! Are you worried about teaching your children about finances?

Parenting is a journey that is filled with ups and downs, but one of the most rewarding aspects of it is the opportunity to teach children about important life skills, including finance. As parents, we can influence how our kids handle money and establish an enjoyable connection with it.

The best part is that we can do it in a way that is interesting and entertaining so that the entire family will laugh and learn together.

Why teach children about Finance?

It's important to understand the benefits of teaching children about finance from a young age. By instilling good financial habits early on, we can help set them up for a successful future. Children who learn to manage money at an early age are more likely to be financially responsible adults, and less likely to make mistakes like overspending or falling into debt.

How can we engage kids in finance?

Including games and activities in our family time is a terrific way to do this. For example, you could play “shopping" where your child is the cashier and you are the customer. Have them set prices for items and teach them how to give the correct change. Or you could make a budget together for a family outing, giving your child the chance to learn how to budget money for various costs.

Another fun and creative way to teach children about finance is through telling stories. Everyone loves a good story! Make up a silly one about a character who learns an important lesson about money. You could even turn it into a play and put on a show! The options are limitless.

Ha-ha! Don’t forget about the power of laughter! Making finance fun and funny can help children stay engaged and excited about learning. For example, you could make a joke about how much money it costs to keep the lights on in the house or how much it costs to feed the family pet. Even small bits of fun can have a significant impact on how your child views money.

Of course, it's important to also be serious and intentional about teaching children about finances. Take the time to explain important concepts like saving, budgeting, and investing. Encourage your child to set financial objectives and join them in celebrating their accomplishments.

Including financial topics in routine family activities is a terrific method to teach kids about managing their money. Include them in your weekly shopping, for instance, and educate them how to shop around and compare prices! Or have them help you pay bills and explain to them the different expenses that come with running a household.

By incorporating finance into our parenting in a fun and engaging way, we can help our children develop important life skills and set them up for a successful future. So, let's use our imaginations, have fun, and watch as our children develop into educated, financially responsible individuals.

Here are some ideas to get your financial role play in full flow:

Play Shop

Set up a pretend shop with different items and prices and give your child a budget to spend. This way, they can learn how to budget their money, compare prices, and make purchase decisions.

Create a savings pot

Find a container, that you can place money into and label it “savings.” Encourage your child to save their money in it and make it a game to see how much money they can save over time. You can even expand on this, and further encourage your child to save their money by offering to match a certain percentage of their savings. This can motivate them to save more and teach them the concept of compound interest.

Play money board games

Board games like Monopoly (try not to fight!). It really can teach children valuable money skills such as budgeting, saving, planning and investing.

Jobs and money

If you can, give your child some pocket money in exchange for completing age-appropriate jobs around the house. This way, they can learn the value of money and the rewards of hard work.

By incorporating fun and interactive activities into your child's learning experience, you can create a positive environment for them to develop strong money management skills while also strengthening your bond as parent and child. 

Finally, but most importantly, don’t forget to also lead by example. Show your children how to save money and make wise financial decisions by doing so yourself.

It's never too early (or too late) to start setting a good example.

I’m passionate about helping families achieve financial success. If you have any questions or need guidance on how to teach your children about money, don't hesitate to reach out. Let's work together to create a brighter financial future for everyone!