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Talking to Kids About Money (part 1)
talessi@ariesfoundation.org
At What Age Should I Start The Conversation?
Research shows that kids can start learning about money as early as Age 3 and the more often you have those conversations with them the better they fare later in life, so let's get things started.
WHY 3?
Here's what they can do at age 3; they can count and they are able to learn. By age 4 the concept of shopping takes hold; the idea that you can shop, you can exchange money for different things. Around age 5 or 6 they learn that you can't leave the store without paying for things.
VALUE OF MONEY
Sometime around age 7 a chilod will start to develop the idea of value, so a younger kid will think I want those five pennies and older kid will understand a nickel is the same thing. As early as age 8 or 9 a child will grasp the concept of the future, and saving for things down the line, and that's where it gets really interesting.
3 JARS
Kids need visual aids to help them grasp a concept, unfortunately for most of us we don't have money hanging around anymore, not with direct deposit and debit cards, so we need to be a little creative in coming up with a way to help them see how money works. We suggest using 3 jars on the child's dresser or window sill;
1.
Saving
2. Spending
3. Giving
Then you as a parent can tell them how you want them to allocate the money that they have and you've got to help them focus on their goals. You can't just say "save money"
that doesn't make any sense to a kid. What you should do instead is to say save for something, and then help them track their progress. Use a chalk or whiteboard as a kind of growth chart, which accomplishes two things; helps them with the visualization, but also with addition & counting skill.
YOU BUY IT, YOU OWN IT
On last rule for parents to try and follow; If they are buying something with their money, and then they decide they wanted something else instead, don't bail them out. Make them stick with the item they choose. Example:You bring your child to the store and they buy Reese's peanut butter cups, but when you get back to the car they suddenly decide they want a Snickers bar. Make them understand they bought the Reese's peanut butter cups an dnext time they can choose Snickers or something else. IT is important for them to understand the cost and permanence of buying something.
GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!
Join us this Thursday, February 11th at 6:30 PM
as we discuss this topic and how to help your children have a better relationship with their money. You can always catch the video highlights on our YOUTUBE CHANNEL as the premiers are Sundays at 6:30 PM.
Visit www.ariesfoundation,org
to learn more.
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