Understanding the value of Money and how to obtain it is a vital ability for children and young adults to acquire. Teaching children about Money, from piggy banks to savings accounts to debit cards, helps them become responsible and self-assured adults. In this guide, we discuss money management for children!
Are you eager to learn about money management? Let’s plunge in!
Why Financial Education for Children?
Money management is one of the essential life skills for children. In addition to learning how to conserve Money, there is much more to consider. In addition, it entails planning, Spending, investing, and monitoring.
A thorough financial education can bring numerous benefits in the real world. Every age group, from young children to college students to elderly folks, can benefit from financial literacy. This is the information required to make crucial financial decisions.
It is much easier to develop great financial habits that will help you thrive if you start young. Whether you want to go on vacation, enroll in a new school, or purchase a home, good money management skills can go a long way!
Part-time jobs, bank accounts, savings objectives, and tutoring/online programs can provide lifelong lessons in money management. With the right information, direction, and effort, you may learn to be financially savvy early and achieve your financial goals much more easily.
Best Financial Planning Advice for Children
Whether you’re extremely young or 18 years old, have extra Money (and don’t know what to do with it), or want to know how a credit card works, the following advice will increase your confidence when making financial decisions!
1- Commence with Actual Currency (and Banks)
Physical cash is composed of coins and bills. Putting pennies in a piggy bank, for instance, introduces you to the fundamentals of money management via money handling. Children ages 9 to 12 who receive allowances can open savings accounts. High school students can learn about representational currency by acquiring a debit card.
2- Gain Knowledge of Allowance
Allowance is a regular sum of Money given for a certain purpose. This can be used for several domestic activities by children (including laundry, lawn mowing, and pet care). The specifics depend on the family. Remember that a child’s allowance does not consist solely of spending Money. Additionally, it can teach you about saving and sharing (more on that later).
3- Set Savings Goals (and Save Money)
Saving for the sake of saving is a healthy habit, but it’s simpler to grasp and implement when it’s tied to specific goals. For instance, do you desire a toy or a video game? You can determine the item’s price and then save accordingly! This boils down to determining how much Money you can save per week (after deducting regular expenses) and how long it will take to save enough Money to purchase the item.
4- Determine How to Save Money
Earlier, we discussed a few techniques to save Money. A piggy bank is one of the most effective means for young children to save Money. This is an excellent method for hiding coins and cash! A savings account can help preteens earn interest and gain banking knowledge. Teenagers may hold a job and be eligible for a debit card linked to their checking and savings accounts.
5- Understand Comparison Shopping
Comparison shopping is really useful whether you are in elementary or secondary school! One method of learning is visiting a grocery store or clothing store with a parent or guardian. Creating a shopping list, checking websites for discounts or sales, and comparing brands all help you save Money!
6- Monitor Spending
Keeping track of your expenditures is a crucial aspect of effective money management. This assists you in becoming a great saver. Do you receive a stipend? If so, record your expenditures and total them at the end of each week. It may be unexpected how much you spend. The practice can help you make wiser financial decisions!
7- Learn How to Earn Additional Income
This is not just for licensed teenagers! If you are a preteen or middle school student, you are likely old enough to earn extra cash. There are multiple ways to accomplish this. These include babysitting, yard labor, organizing a sale (such as a lemonade stand), dog walking or pet watching, and even tutoring fellow students who require academic assistance!
8- Understand Credit (Age Appropriate)
If you are a young child, learning about credit may not be the right moment. However, as you become older, understanding credit is an excellent learning opportunity! Credit is the capacity to borrow cash with the knowledge that it will be repaid later. For instance, an older child could borrow Money from a parent and repay it with interest (a charge for borrowing the funds).
9- Discover Your Errors
It is normal for children to make mistakes. Hey, even adults make errors! The same is true while learning about money management. Remember to treat yourself with respect. Instead of considering a mistake in Spending, saving, or investing as an unforgivable sin, regard it as an opportunity to teach. This will aid your growth and learning!
Recognize the Importance of Giving
Managing your finances can give you numerous advantages. But what about other individuals? If you are in a position to help the less fortunate, your contribution will go a long way! Consider the organizations to which you could make a charitable contribution. For instance, if you love animals, you may donate or help a local animal shelter raise funds. It’s rewarding to give back!
Financial Management Resources for Children
You can find a resource for money management from short-term to long-term objectives!
Understanding that purchasing anything takes Money is a crucial initial step for young children in understanding Money’s worth and use.
The popular book Berenstain Bears’ Dollars and Sense helps children (ages 4-7) learn about Money and responsibility with the help of the Berenstain Bears!
This resource is loaded with financial literacy lesson plans and exercises on Spending, allowance, and overall money responsibility for children.
The Survival Guide to Financial Intelligence: Earn, Save, Spend, and Donate As a book that is both entertaining and instructive, it gives a solid basis for financial literacy.
Economics and Financial Planning: This is an excellent educational resource for instructors and students of all ages interested in economics and personal finance.
How to Turn $100 into a Million Dollars: The book offers age-appropriate guidance on earning, saving, and developing one’s finances.
As a free online platform for financial education, High School Teach Banzai is accessible to both teachers and students. This software educates through real-world scenarios such as banking, budgeting, and taxes.
Finance in the Classroom: Another excellent resource for educators and students (as well as parents). It’s an excellent beginning place for being financially savvy!
I Want More Pizza: The book, written by Steve Burkholder, is a gift that goes on giving! This popular book teaches about personal Money and financial literacy.
Last Words: Money Management
It is never too late to learn about effective money management, whether in elementary, middle, or high school!
In addition to the appropriate learning resources, engaging with a reliable instructor or mentor can be extremely beneficial to guide you through basic financial courses. From lemonade stands to debit cards to investment accounts, the key to retention is engaging and enjoyable learning.
In addition to understanding the value of Money, it is essential to recognize the significance of giving back to others and your community. If you are prudent with how you earn, spend, save, and invest your Money, you may be able to assist children, adults, and others in the future.
Explore our online financial education classes for children!
From financial education to math skills to video game design, Matic Academy provides instruction for the real world. Our individualized one-on-one coaching makes STEAM education incredibly simple. Additionally, we provide on-demand classes and boot camps!
Matic Academy courses are interactive and entertaining online experiences regardless of the style, where kids acquire the skills necessary for future careers and interests in subjects that are typically difficult to get in conventional classrooms. All in a hands-on manner that children like!