Teach Kids Smart Money Habits 

More often than not, it is not the money someone makes that makes them rich. It is the choices they make with the money they have.

This is why financial literacy is important at any age.

From differentiating between needs and wants to maximizing opportunities for saving, there are several ways to work with money smartly.

Here are a few things you can do with your child so they understand the value of money:

Make them understand needs and wants

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Housing, food, and utilities are examples of things one needs to survive. The rest, anything beyond those basics, typically falls under wants: nice-to-haves. A good way to explain this to your child is by using the things they love. Ask them to make a list of what they think are needs and wants. Help them refine the list and explain why something they consider a need might actually be a want.

Come up with a fun spending plan together

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Children learn faster from experience. A simple way to introduce financial smartness is to create a spending plan with them. For example, if you are heading to the supermarket, give your child a budget for their shopping. They will learn to work within the budget to buy necessities and, if possible, a treat or two.

Make a savings account for bigger wants

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The good old piggy bank still works! Let your child learn the importance of saving for something they really want. Give them a small allowance each month to save. If they want a bicycle, for instance, they may be motivated to put their pocket money into their savings account or piggy bank.

There are plenty more ways to help your child make smart money decisions. FinFun’s mission is to help with exactly that. We curate activities and games that help children of any age learn the nitty-gritty of making smart money decisions.

Cover image sourced from Magnific.com