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16 Fun And Inspirational Ways To Teach Kids About Money

16 Fun And Inspirational Ways To Teach Kids About Money

Being a parent, I find kids are very clued in on what they want, and do not seem the slightest bit concerned that it will involve a monetary cost! What I find even more amusing, is that they have no problem spending our or anyone elses money, but ask them to dig into their savings and I am met with highly indignant faces! Oh yes, before they decide to spend their money, there is deep thought and analysis before a decision is made, and of course the guilt trip I am put on for even suggesting they pay for it themselves, never ceases to amaze me!

Yes, I am a parent who tries to teach my kids about money, but finding fun and inspirational ways to do so, is not always easy, especiallly when dealing with different age groups of kids.

Here are some examples of ways you can teach kids about money.

1. Calculator

Give them a calculator while out shopping, so they can key in the item value and keep you informed of costs on an ongoing basis. Comment on some items so they know what is cheap and what is expensive!

2. Allowances

If you aren’t doing it, just try giving allowances for a few weeks, different allowances for different age groups. Be clear to them that they will get no other money for anything until such a date, so they are in charge of the money they are given. Try giving different amounts starting small and see what their spending pattern is like. See if they spend it all in one go, if spend it on junk food, treats, small toys, books etc. This will give you a baseline to work with. When you have this you will know what areas you need to work with for your child. Of course young children will struggle with this so only use it for kids who understand time and can handle some level of responsibility.

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3. Shopping

Take them shopping with you and ask them to take notice of the prices of different items of the same type. For example how branding, quality, weight, discounts etc work.  Ask them why they think one is cheaper, more expensive, etc just to increase their awareness of cost. Kids get so bored out shopping so keep them involved. It is a great way to learn.

4. Challenges

Set them challenges to work individually or as a team to buy something and come back with the most money. Of couse you will also need to explain about value to them so do this after they understand the concept of shopping covered in the previous point.

5. Coin Game

Play a coin game with them where they need to work out how many small coins equals one bigger one etc. For smaller kids they may need a reminder chart which you can simply be drawn out. This way they will understand that its not just the number of coins that matters but how much each coin is valued at.

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    6. Observe transactions

    Ask them to observe you paying for something and how the transaction goes. whether it is card, cheque or cash transaction. Let them see how each transaction happens. Teach them that money is a form of exchange for a goods or service! Explain the difference to them with examples.

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    7. Banking Experience

    Take them to a bank and show them how it works. Kids love mystery and stories. Explain where the money goes, that is the money that goes back to the bank and the money that comes out from the bank.

    8. Take them to an ATM

    I find this always amuses me, as my kids think its magic that a card just gives me what ever money I ask for. I show them that this really comes from my savings or from a loan but that every time I use the card to take money out what I have left, gets lower and lower.

    9. Brainstorming

    Ask them to think of ways to save more money and get more money. No matter how whacky their ideas may seem, they are thinking it through and that is good. Write down their ideas and try to keep adding to the list. You never know if you may come across a marvelous money saving or money forming idea!

    10. Observation Field Trip

    Take them shopping or simply on a car journey through a commercial area and ask them to look around them and see different ways people are spending money, and on what they are spending, whether it’s gas at the station, taking money from an ATM, carrying packages or groceries, or whether they are doing a task where they will get a monetary payment in return.

    11. Online job chart

    Give them a jobs list at home and allocate different monetary values for different tasks. Be sure to have a value of zero for some tasks which they need to do as part of the normal contribution to the household. This also teches kids about value..

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    12. Money Bingo

    Play money bingo where they need to work out how many coins match a number on a box and who ever gets the most right wins. For this to work they will need to add up the correct number of coins and stack them on each number. Of course you will need large boxes and plenty of space.

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      13. Coin Groupings

      Gather all small coins and ask kids to separate them into the same groups. Ask them to write down how many coins are in each group.  Then involve them in trades to try to get lots of coin mixes of different coins going. The trades need to be for the same monetary value.

      14. Allocation Jars

      Give kids three jars and ask them to label and decorate them as they wish. They should be labeled Spend, Save and Give. As a parent you can either decide what amount of money they have goes into each or encourage your child to think about it and then come to an agreement with them over the distribution of the money. Discuss with them also what each jar represent and what will happen to the money in each jar. Kids love seeing things build up and love to shake the jar or take money out and re-count again. Physically seeing their money will give them a greater awareness of money and how it can be used.

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        15. Coin Rubbing and Tracing

        Do coin rubbing and tracing shapes of different coins. For notes, ask the kids to find as many differences as they can see between the notes. This will increase their power of observation!

        16. World currency

        Encourage them to collect money from around the world and to look up the value of each currency. This is great to let them know about money on a global scale. Open n online converter and show them how to do their own conversions! It will definitely make them think!

        “The easiest way to teach children the value of money is to borrow some from them” – Unknown

        Photocredits: Pinerest-Moneysavingmom, Freehomeschooldeals, Creeksidelearning.

        Featured photo credit: How To Teach Kids Money Skills, by Carissa Rogers, Flikr via flickr.com

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        Last Updated on July 10, 2020

        The Definitive Guide to Get out of Debt Fast (and Forever)

        The Definitive Guide to Get out of Debt Fast (and Forever)

        Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

        Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

        Identifying All of Your Debts

        The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

        Here’s how you can get started identifying your debts:

        1. Own Your Debt

        Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

        Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

        2. Make a Debt Tracker

        It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

        Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

        3. Get Your Debt Number

        Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

        Prioritizing Your Debts

        All debt is not created equal. It’s imperative to understand that there are different types of debt.

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        1. Understand Bad and Good Debts

        Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

        There are three main types of bad debt:

        • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
        • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
        • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

        Good debt is identified as investments in your future. Here are three common types of good debt:

        • Student Loan Debt
        • Mortgage Loan
        • Business Loans

        2. Decide Which Debt to Pay off First

        Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

        Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

        If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

        3. Don’t Pay the Minimum Amount

        Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

        Removing Obstacles to Pay off Debt Quickly

        Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

        1. Set a Reminder to Track Your Debt

        “If you can’t measure it you can’t manage it.” -Peter Drucker

        It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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        Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

        Set weekly and monthly goals so you can have short term wins and keep the momentum going.

        2. Hide Your Credit Cards

        If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

        Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

        3. Automate Everything

        Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

        4. Plan Ahead

        Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

        For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

        5. Live Cheaply

        The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

        • Live with roommates
        • Cook dinners and prepare lunches for work instead of eating out
        • Cut cable and choose Netflix or Amazon Prime
        • Take public transit or bike to work

        Finding the Lowest Interest Rates

        The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

        If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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        1. Maintain a High Credit Score

        Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

        • Never miss a payment
        • Don’t exceed 30% of your credit limit
        • Don’t sign up for more than one card at once
        • Limit hard inquires, like auto-loans and new credit cards
        • Monitor frequently with free credit-tracking software

        2. Find Balance Transfer Offers

        Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

        Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

        If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

        How to Get Rid of Debt Forever

        Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

        1. Keep Monitoring and Adjusting

        Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

        Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

        2. Earn More Money

        There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

        Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

        Here are some examples of ways to earn more money:

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        Talk to Your Boss

        Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

        Start a Side Hustle

        This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

        Build an Online Business

        There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

        3. Celebrate Your Wins

        As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

        While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

        4. Set New Financial Goals

        Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

        Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

        These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

        Conclusion

        Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

        Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

        More Tips on Getting out of Debt

        Featured photo credit: Pepi Stojanovski via unsplash.com

        Reference

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