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Ages 3-5
The time to begin teaching money-management skills is whenever your kids start showing curiosity about money. Start by explaining what money is. Money can be defined as anything a group of people accepts in exchange for goods or services. Let your preschoolers handle different coins and bills, and point out the values of each. Show how money is exchanged for other things by playing “store” or “restaurant.” Basic math skills are essential to money management, so make sure your kids have a strong math foundation. Play counting games and board games with play money to build math proficiency.
Build Responsibility
When your kids start kindergarten, start talking about adult obligations relating to money. For example, tell them why you go to work every day, and allow them to visit your workplace. Talk about other jobs people have, and point out workers you see (such as wait staff or police officers). Show your kids a check you wrote and explain that it functions as payment, just like money. Take them to the bank and ATM and demonstrate making deposits and withdrawals. Show them your monthly utility bills and how you pay them by writing and mailing a check. At tax time, explain how you have to submit a tax form. All of these activities will form a foundation for your children’s money responsibility.
Shopping Strategies
Take advantage of every learning situation. Turn shopping trips into lessons on making choices about value and quality. As you shop, tell your kids what item you are looking for and how you decide which to buy. Your preschoolers won’t understand everything but will pick up on your careful approach to shopping. Involve your kids in simple grocery choices, such as whether you should buy oranges or bananas this week. Help them practice identifying coins and cash by providing them with money to make a small purchase and receive change from the cashier.
Money, n. A blessing that is of no advantage to us excepting when we part with it. —Ambrose Bierce (1842-1914)
I Want It, I Want It!
If your preschoolers go to the store demanding everything in sight, set a limit in advance. Make it clear what specific items you are after (in other words, not toys for them). Allow your kids to pick out one item so they can spend time choosing which drink to buy, for example. Make sure your kids aren’t hungry, but take along a healthy snack just in case. If they beg for something or throw a fit in a store, refuse to buy what they want. Otherwise, they’ll learn that begging and misbehaving “work.” When they behave well while shopping, reward them with hugs and words of praise.
