Kids and Money: How to Teach Money Concepts

Once a child becomes a certain age, money is something they cannot wait to get their hands on. Birthday and holiday cards filled with well wishes and money can be very exciting. Most of the time that excitement doesn’t come from the thought of adding that money into a piggy bank but more from the ideas of things they can purchase. While that habit is innocent now, it can make for tough lessons in the future. As adults we may have a good handle or even mastered the workings of money but let’s look at how to teach money concepts to kids.

Teaching Money Concepts to Kids

EARN

Let’s start by explaining how to get money. You can’t save or spend without receiving money. Other than holidays and birthdays they can earn money through chores.

Buying things they want with money they earned can provide a sense of pride. They may also be more cautious about the things they spend their money on because they have to earn it. Considering if that toy or jacket is something they really need at the moment is a sign that they are beginning to understand how money works. To know exactly where they are spending their money you can use Greenlight.

Greenlight is a debit card and app that allows you to manage money with your kids. It’s more convenient than cash. They can be paid through the app for chores or various good deeds and you can track what they spend. The debit card can be used where MasterCard is accepted and you get real time notifications when they spend.

SAVE

Though it may seem logical that saving is a big step in financial literacy we are starting at the basics with kids. Saving can seem purposeless for them so starting with a goal is great motivation.Setting short term goals by saving for gifts or special items will give them something to look forward to. Once they’ve caught the savings bug you can introduce different reasons to save.

Tracking savings progression through an app provides the perfect visual that some kids may need. Through Greenlight, the funds they are paid directly to their account that has a linked debit card can be put into a savings account. They can set savings goals and check their accounts anytime through the downloadable app. Click to for easy money management with Greenlight. https://actv.at/jrk/8760

Earning and saving are great places to start with teaching money concepts to kids. Once they have a handle on those you can move on to things like long term savings and investments.

Have you introduce how money works to your children?