Teaching money lessons to kids is a crucial thing. It helps them to understand the concept of money from an early stage and develops their experience from it. Gaining financial skills is vital to lead life successfully and enrolling kids in money lessons are a primary step towards it. However, the real challenge lies in how to teach them. Thus, here we have discussed some easy and interesting ways to teach your kids about money:

1. Give them money control

The first thing you should do is to give your kids some money control. By according them some responsibility to handle cash, you can teach them the fundamental of money. For example, introduce them to the coins and ask them to save it in their piggy bank to see their money growing. Giving money control allows them to spend money wisely.

2. Educate them to save money

From a young age, everyone should adopt the habit of savings. For instance, your kid wants to purchase a toy, tell him/her to save money and buy it the next month. With this, he/she will learn the value of saving money and get rewarded later on.

3. Tell them to reduce expenses

Avoid unnecessary expenses in front of your kids to indulge in the importance of financial planning in them. If your kid is asking you to buy him something, tell him to wait for some time and decide whether it is required or not. Saving and reduced expenses go hand in hand. If they will learn about saving money they tend to spend it smartly.

4. Teach them to create a budget

Educate your kids on creating a budget to keep track of their monthly expenses and savings. In this technological world, you can use some budgeting applications like everydollar in your child’s device and teach them simple budgeting and investing money. They should learn about keeping a record of where they are spending their money from the beginning, no matter how small the amount is.

5. Educate on credit concepts

Credit isn’t a bad thing. In fact, you should teach your kids about the benefits and drawbacks of using credit cards for purchasing items. Using credit cards is not only comfortable but also serves as an efficient financial management tool to keep track of your spending and earning rewards.

6. Let them earn money

Give your kids some space to earn money for his needs. During summer/winter breaks, indulge him in cleaning the house, washing the car, etc to get some earning. It is always good to earn some money from an early age for achieving financial objectives in the long run too.

7. Take them to bank

You can take your kid to the bank with you and show them how to deposit money, withdraw cash, etc. You can also open a savings account with your child’s name to teach them banking lessons and how money operates.

8. Look into scholarships

If your child is about to complete his schooling, ask him to look for scholarships. This way he/she will be able to determine his/her financial goals and work towards it. Know more about how to apply for scholarships.

9. Read money books

Reading is another mesmerizing way to teach kids about money management. You can choose some simple story books to deliver basic money lessons to your children which remain with them forever. These books explain the basics of finance simply and interestingly to lead children on the path of successful money management as they get older.

10. Play money games online

There are thousands of money games available online. It helps kids to learn the concept of money while having fun. These games are categorized for children of various age groups also. This is a great way to teach kids about saving, purchasing and other money skills with fun and entertainment.

Final words

Money is essential for everything and giving money lessons to kids is an essential step in their nurturing. Children who learn about money from a tender age tend to get more benefits in saving, investment and remain in a better position to pay for them.   

Author Bio: Sapna Singhal is a Senior Content Writer at My Banking Information which is a Financial Content Blog which teaches non-financial people how to invest and also about finance in a simple and easy to understand way. Check out her website @ mybankinginformation.com  

What money lessons will you start using with your kids?