Many parents believe that young children do not need to know about money or how to save money too early. However, teaching children about money is considered necessary for children to understand the value of money and how to use money correctly.
And one of the obvious benefits of teaching children about money is that children will know how to save money and spend wisely. At the same time, children also know how to compare product prices, practice calculation skills and develop thinking from an early age. When children grow up, they will have the basic financial foundations, helping them to manage spending properly and avoid debt and poverty.
Parents can skillfully apply simple but effective ways to teach children about money shared in the following article.
Game of recognizing banknotes
Children from 2 to 3 years old cannot understand the value of money, but they can still learn specific numbers (denominations). Parents can use ways to teach children about money such as playing games to recognize and distinguish bills. Introduce to children the size, color, characteristics and value of each bill so they can remember.
Learn how to save money
Many families often have the habit of giving children pocket money every day, or giving them lucky money on Tet holidays. Encourage your child to keep a piggy bank or keep it in a small drawer. This way of teaching children about money not only helps them form savings habits but also helps them learn how to spend money wisely.
For older children, parents can encourage them to save money in the bank and plan their spending and savings periodically weekly or monthly. This will help your child understand interest rates and how banks pay depositors, while also providing a useful lesson about the value of savings.
Let your children play financial games
Parents can create conditions for their children to play games about financial skills such as Monopoly. This is not only an entertaining game to increase bonding with relatives, it can also teach children a lot about personal finance and investing. Furthermore, children are also trained in negotiation skills and understand the balance between earning and spending money in reality.
Let your baby go to the market or supermarket with their parents
Parents can take their children to the market or supermarket to shop. This is also a way to help children learn about the price of each product and compare the prices of products with each other. Don't forget to explain to your child the quality of each item, then discuss the price difference between the two types and decide together which one to buy.
Let your child play a sales game
Parents can also apply ways to teach their children about money through interesting sales toys . Parents play the role of buyers, while children act as sellers and pretend to buy and sell necessary items. These hours of fun together will bring a lot of joy and laughter to the whole family. Furthermore, children also learn many useful things such as recognizing items, learning how to calculate and practicing necessary life skills in the most natural way.
Teach children how to make smart choices
Children are often very excited when their parents suggest gifts they can receive on holidays and birthdays. However, choosing the most suitable gift is not easy. Parents can write a list of their baby's favorite items with their baby and arrange them in order of priority. Help your child understand which items are necessary and unnecessary, as well as the true value of the items they desire and the budget to avoid overspending.
Encourage children to earn their own money
Making your own money is not only a way to teach children about money, but also a way to improve their confidence and skills. Parents can suggest ways for their children to make money such as selling old toys, selling sundries, handmade items... to earn extra pocket money. Don't easily give money to children like "throwing it out the window" because it makes children not understand the value of money and form the habit of dependence.
Let children participate in volunteering and donating activities
For children aged 6-7 years old, parents can encourage them to participate in volunteer activities and donations such as pocket money for difficult situations. Children will understand the value of money as well as learn how to love and share with those around them more.
Above are ways to teach children about money that many parents apply. Teaching children about money and knowing how to use it properly also helps them form a positive attitude towards money. Parents, please regularly follow Mykingdom's Toy Handbook to update more useful tips.
