Simple Ways to Help Kids Learn Money Management

Teaching kids about budgeting and financial literacy can seem overwhelming. However, if you use the right approach, teaching children how to budget can be a fun and interesting experience.

There are several fun and simple ways to help children understand the importance of budgeting and money management. In this article, we’ll highlight five simple ways to help kids with budgeting.

Create a "Needs" and "Wants" Chart

The first step in teaching children about budgeting is ensuring that they understand the concept of necessities. A needs and wants chart is a great way to help your child to understand the difference between the things that they need (like food, water, clothing, and shelter) and what they want (like toys, games, and candy). Creating the chart with them and talking through which column every item belongs to

Give Them an Allowance

Providing a child with an allowance is allowing them the opportunity to make their own financial decisions. Their choices, whether good or bad, will teach them that their actions have consequences. Start with a small weekly allowance and teach your child how to save, spend, and donate their money.

Provide Games and Books About Budgeting

Play is a proven way to teach children complicated topics. The use of games and books is a great way to teach children about budgeting in a fun and interactive way. Be sure to choose games and books that are appropriate and focus on concepts that your child’s age group will understand.

Click here if you’d like to read and learn more about budgeting for kids and kids' money books.

Involve Them in Creating the Family Budget

The best way to teach a child any concept is by showing them that you practice it yourself. Showing your child that you create a budget for the family will give them firsthand experience with creating a budget. Ensure that you talk through your decisions and why you’ve chosen to make them so that your child can learn how to also make rational money decisions.

Give Them a Piggy Bank

Kids love piggy banks. Allow your child to pick a piggy bank or create one of their own out of a jar or a box, this will give them a greater sense of responsibility. Once the piggy bank has been chosen, educate your child on the importance of saving money and how the piggy bank will allow them to save some of the money from their allowance.

Final Thoughts

Budgeting doesn’t have to be a daunting concept for children. Through guidance and a few fun activities, they can learn about the basics of money management and budgeting