Beyond the Classroom: Financial Literacy at Home
Summer break is almost over and school is soon to be back in session. Teaching your kids valuable lessons starts at home to stick throughout the school year. Understanding money is a valuable lesson that can be applied when buying books at the Book Fair, purchases on field trips and even school lunch.
Here are a few fun ways to introduce financial literacy to your child:
1. Saving vs. Spending
Even young children can learn the difference between wants and needs. Try giving them a clear jar to save money in so they can see their savings grow. This helps them connect the idea of consistency + growth = accomplished goals. Each time they add money, celebrate the progress together. This visual reinforcement helps them connect the action of saving with the reward of reaching a goal, whether that’s a toy, a book, or something bigger.
2. Setting Goals
Encourage your child to save for something they really want like a toy, game, or even an fun outing. By teaching them to set a goal and work toward it, you’re helping them build discipline and patience. Write down the goal, track progress, and talk through how long it might take to reach it.
3. Earning Money
Earning an allowance can teach kids the connection between work and income. For older kids, summer or part-time jobs can provide real-world experience in managing earnings. The key lesson is the connection between effort, income and principle that will guide them well into adulthood.
4. Budgeting Basics
Introduce simple budgeting by dividing money into categories: save, spend, and invest/give. This not only teaches balance but also instills generosity when they set aside money for giving. It can teach organize to keep track and manage the different buckets/categories. You can make this fun by using labeled envelopes or jars. This not only shows balance but also builds healthy money habits early.
5. Smart Spending Habits
Show your child how to compare prices or look for deals. If you shop with them, let them help make a decision within a set budget, this is a great way to teach value and trade-offs. By making them part of the decision making process, you’re teaching them to think critically before making purchases. A skill that gives them an edge as they grow up.
We believe financial literacy is a lifelong skill that should start early. By giving children the tools to manage money, you’re setting them up for success in school, life, and even in future business endeavors.
