Parents often afraid that their children grow as someone without sufficient financial literacy. Lack of financial literacy can affect children’s investment and spending when they are old. Thus, it is important to teach children about money.
Teaching children about money is as important as teaching them to say ‘please’ or ‘thank you’. Children need to know what money is worth and how to practice smart habits that lead to success.
However, many parents cannot find an effective and easy way to teach their children.
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Teaching children about money shouldn’t be complicated. Parents should just put in the effort and time. Moreover, starting sooner is going to be better.
Cited from CNBC Make It, Jim Brown, an auditor, investor, tax preparer and financial consultant shares the solution. Brown has two kids. Both of them are under 14 years old. Here are Brown’s ways to teach children about money
1. Play ‘Let’s Go Shopping’
Some kids are more engaged in the experimental or gamified learning process. For those kids, this strategy is effective.
‘Let’s Go Shopping’ is a game that can be played when kids are in preschool. The game starts with parents to prepare a miniature supermarket. The miniature can be put in the living room or bedroom. The miniature should have a toy cash register and markets fruits and vegetable play set.
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The items should have a p rice on them. Let the children questions, while, the parents should be there to answer the questions. This shopping experience can stimulate children’s math and budgeting skills. On top of all, that also helps them to talk about money.
2. Play “How Much Does It Cost?”
After the ‘Let Go Shopping’ game, parents can continue with ‘How Much Does It Cost?’ game. This game is similar to ‘The Price Is Right’ game.
Parents can start at the dining table. They can take turns presenting items for sale along with their approximate prices.
