Teaching your children about money is one of the most important lessons and skills that you may teach them in their entire lifetime. The topic of money and personal finance doesn’t always come up in school curriculum, other than showing them what a penny is versus a nickel – that’s why it’s important that money and finances are a regular and comfortable conversation in your household.
It can be an overwhelming thought when you start thinking about the abundance of lessons you could teach your children in regards to financial education. That’s because there are so many things to teach from demonstrating the value of a dollar, teaching the difference between wants versus needs, why it’s important to have an emergency savings and so many others. It’s important to set an example for your children (because yes, they watch how you handle your money believe it or not) and to actually practice these lessons in real life.
Remember, teaching your children about money looks different for every family unit. Not all families will teach the same lessons or teach in the same way. Some will teach based on lessons they’ve learned through good times or bad, some will want to have a system like the ever-popular jar system. Remember that it’s okay to do things differently because what works for one may not work for another.
CSE is here to help guide you as a parent or caregiver, and to provide you with resources that will help you set your child on the right financial path.
Here are a few ideas inspired by a list from U.S. News1 on a few simple ways you can teach your kids about money:
- Demonstrate the value of money.
- Talk to your kids about money.
- Pull out the board games such as monopoly or life.
- Let your kids help you with shopping.
- Stress the importance of curbing impulse purchases.
- Start a coin collection. Try filling a jar with money and when it’s full head to CSE’s free coin counter2 to see how much you’ve saved and start again!
- Discuss big purchases with your kids.
- Encourage teens to get jobs and earn money.
- Encourage your kids to give to charity.
- Help your children open a bank account.
- Show your kids how to start a budget.
- Make saving for something a family goal.
- Teach older teens about credit cards and how to use them properly.
- Share your past money mistakes.
At different stages throughout your child’s life, the financial lesson will change. A huge and helpful resource when it comes to teaching kids about money is the Consumer Financial Protection Bureau’s (CFPB) Money as You Grow Guide!
This educational website walks you through all different stages and milestones in a child’s life from young children, through teenage years, to young adults, and what challenges they may be facing. This resource provides downloadable reading guides, talking points, money habits to teach and try with your kids and so much more!
Another great resource is CSE’s very own Banzai! Financial Education Collection ‘Teaching Kids About Finances which has a number of articles and coaches to browse.
If you ever have a question about teaching your children about money, never hesitate to reach out to a CSE representative, we’d be happy to help where we can. Or you may find that opening one of our youth accounts is a great place to start!
1. Source: US NEWS - https://money.usnews.com/money/personal-finance/family-finance/articles/ways-to-teach-kids-about-money
2. Coin counters are free to CSE members. There is a fee for non-CSE members to use the coin counter.
Disclaimer
Though we hope you find this content useful, it is only intended to serve as a guide. Your next step is to speak with a qualified professional. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.
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