Teaching kids about saving money is an important thing nowadays as money becomes an important thing for all ages all over the world. Adults might know more about money but for children, the concept of saving money may be hard to understand. That is why the most important step in learning about money and finance is understanding what money is all about.
There are different degrees of knowledge for kids regarding money. There are various ways and methods on how you can teach your kids on saving money for the betterment of themselves and your family.
Money comes in different shapes and sizes and different units of money have different values that can be used to pay and transferred for different matters and purposes. Sometimes kids cannot understand this and it is our responsibility to show them the use and purposes of different types of money, how to use and how to save them.
The important skills that kids need to know when we talk about money is identifying the money and what they can do with money. Never say it is too early for kids to learn about the value of money and how to save them. The earlier you teach them, the better money management that they can do for themselves. Children who learn to save at early ages have a great advantage where they had been exposed to the function of money and then practice them in their daily life.
Kids learn based on visual perceptions. They need to see concepts in order to understand something. Kids at the ages of 3 can start understanding about money and it is the suitable time to teach them about using money and saving them. You can share the experience of of using money and saving them with your kids so they can watch them and practice what they see from the daily life.
The most important concept about money is about changing and making deals so teach your kids about these two concepts. Teach your child about deals and choices and apply these concepts while communicating with them or when you go for shopping. Show them how to deal using money so they can understand the importance of money and avoid wasting them since they know the benefits if saving money.
Kids don’t have a long time frame where they will become teenagers and then adults in no matter of time so it is better for you to start early teaching them about saving money so it will become easier for you to let your kids manage their financial matter in the future.
It’s interesting that you say that kids as young as three are capable of understanding the ‘concept’ of money.
While of course, some of the purists I run with would probably start an argument with us regarding the word “money” being used in place of currency, I found your article very well written and timely as I am about to bring a new young one into this world.
I’ll take your advice to heart and get him financially literate as early as humanly possible — if not before! 🙂
This first step in life to know the importance of money and savings.Its really a good-thing to make understand a child to save money.
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Money is one of the basic commodities in our society and you should learn how to spend it wisely. So I think it’s a great idea to tech kids to save money in a young age, so that they’ll take this with them as they grow up.
I’m very impressed by this advice. It seems like budgeting skills are getting our country in trouble all over. If we can instill practical budgeting skills in our children, the future of our nation will be brighter.