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Tips for Teaching Kids About Money Part 1 of 2

Apr 3, 2015

It’s never too early to begin teaching kids the value of money. April is Financial Literacy month, so all month long, PFCU is encouraging parents to start the conversation about establishing healthy financial habits that will help kids understand the importance of money. The first five tips for teaching kids about money are listed below. Check back later this month for the second five.

Tip 1: Clip Coupons

Before heading to the store, have your child help you clip coupons. Allowing kids the chance to cut out coupons will make them feel like they’re helping and it is a great way to discuss with them how coupons work. While in the store, point out the price of the product and show them how much money you’re saving by using coupons.

Tip 2: Make It Fun

Kids love technology, so why not teach them about money by having them play fun and educational money-related games online? Kids Math Games offers money games for children in grades 1-8. Monitor younger kids while they are playing to make sure they understand how the games work, then have a conversation with them about what they played. You’ll be surprised at how much they’ve learned.

Tip 3: Have a Yard Sale

As the weather warms up, do some spring cleaning and have a family yard sale. This project works best with preteens because they’re old enough to handle the responsibility and will be able to learn from making decisions about what they’d like to sell and the price point to sell each item. Having them help you haggle with customers over prices is also a great way for them to begin understanding the value of hard work needed to earn some cash.

Tip 4: Encourage Kids to Save Money

Kids of all ages can benefit from helping out around the house to earn an allowance. Preschoolers can help with small tasks like cleaning up all their toys, while older kids can do things like taking the trash out or feeding the dog. When giving them their allowance for a job well done, give it to them in smaller denominations. If you reward your child with $5, hand them five $1 bills and encourage them to set at least $1 aside in savings. Teaching children to save a little bit of their money at a time will instill healthy financial habits that they will carry with them into the future.

The earlier we can teach kids about the importance of practicing good financial habits, the better chance they have of maintaining these healthy habits through adulthood. Remember to check back in a few weeks to read tips 6-10. In the meantime, begin using these tips to teach your children the value of money and encourage your child to show off their creative side by entering PFCU’s “Picture of Success Art Contest.”

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