Everyone knows kids are like little sponges, soaking up knowledge and new things like it’s nobody’s business. Experts say this is the perfect time to pick up lifelong healthy habits. And guess what? Managing money well and having the right information is one of those golden habits. Children who learn about finances from a young age develop a healthier relationship with money. To affirm this, the province of Ontario announced that it will include finance literacy as a requirement for high school. The goal is to ensure students exit Ontario’s school system with literacy and practical financial skills. You can read more about the news here.
As a writer, I must admit that numbers aren’t my forte—words are my playground, and communication is my superpower. But to help you parents, I’ve consulted a lot of studies and articles to get some solid advice to help you teach your kids about finances. Get ready for expert tips to turn your little ones into financial specialists!
1. Keep Finances Open and Honest
Explain where money magically appears from (spoiler: hard work), and stress the importance of earning, saving, and spending wisely. Let kids know your money management secrets—show them how you budget and make financial decisions. And remember, children are copycats, so model good financial habits like budgeting, saving, and avoiding those irresistible impulse buys.
Pro tip: Create a simple budget with your child. Use jars labeled “Save,” “Spend,” and “Share” to teach younger kids how to allocate money for different purposes. It’s practical and a bit like magic!
2. Use Real-Life Situations
Turn everyday tasks into financial lessons. Involve kids in grocery shopping or planning a family outing on a budget. Show them the price tags and explain comparison shopping. Teach them to budget for needs over wants. You can also help them set financial goals, like saving for that shiny toy or a fun activity. This teaches delayed gratification and the importance of working towards financial goals.
To help you, the Canadian Foundation for Economic Education (CFEE) developed a program called “Talk with our kids about money.” The goal is to support parents and guardians in their efforts to help their children learn about money. Visit the Home Program to learn more about it.
3. Build a Savings Routine
Give your kids a piggy bank or open a savings account for them. Encourage them to save part of their allowance or gift money and explain the wonders of interest and compound growth. The WFCU Credit Union Bank has accounts designed to teach youth the fundamentals of money management. To find out more, visit their website.
Pro tip: Encourage them to set aside money for charity. It’s a lesson in generosity and understanding the impact of helping others.
4. Use Educational Games and Tools
Who says learning about money can’t be fun? Use apps, games, and books to teach your kids about money management in an engaging way. Look for resources that turn financial literacy into an adventure. There are fantastic apps, books, and online classes that can help you and your children learn more about finances. Here are some:
- “PiggyBot” helps younger kids track their savings and spending in a fun way. You can download it here
- “Bankaroo” simulates a virtual bank, and kids can learn how to budget, save up for goals, and spend responsibly using a cool easy-to-use app and website. Learn more here
- Books like “The Berenstain Bears’ Dollars and Sense” are great for teaching financial concepts through stories. You can buy it from Amazon
- The Money Prodigy website offers budget planner models you can print and use with your children. They also have many tips for giving your kids money education;
- Family Services Windsor-Essex (FSWE), in collaboration with Financial Fitness, developed a program that offers financial counseling and education. Learn more about it here
Turn learning into a game, and watch your kids become finance wizards! Did you like the tips and thinking about trying one? Post and tag @TheDriveMag!
