Fun Ways To Teach Your Child Financial Responsibility

I want my children to understand and appreciate hard work, financial stability, saving and giving. Here are a few simple fun ways to start teaching kids financial responsibility now. 

1. Give a small allowance. Double whatever is leftover at the end of the month

This is a fun way to teach your child about the benefits of saving. Give or reward your child with a $5 allowance (or whatever amount you prefer). Tell your child that whatever money is left from the $5 at the end of the month, you will double.

Allow your child the option to use this money to buy a small toy or treat, but remind them that whatever they save out of the allowance will double at the end of the month.

This simple method will introduce the concept of saving and the benefits that can come from smart spending. They may not see the benefits right away, but once your child begins to see their piggy bank balance grow each month, they will start to grasp the concept. Be sure and sit with them and count the money they earned in "interest" by not spending it right away.

2. Give your child an opportunity to earn money.

Giving your child an opportunity to do small things in return for a money reward, whether for an allowance or just in general, will help them grasp the concept of earning from a young age.

Of course, they aren't going to go out and get a job just yet, but you can give simple tasks to your toddler to get them in the habit of helping out, such as sweeping the floor or helping a neighbor pick up leaves and put them in a trash bag.

Rewarding them with some coins or a dollar bill will make them more aware of the concept of earning.

3. Allow your child to make purchases.

This goes along with #1, but you can also educate your child to learn more about pricing when they are making purchases, while making it a fun experience for both of you.

For example, when at the store give your child a budget to stay under, say under $5. This will also help them understand some things you have to wait and save for. It's a fun way for them to realize that things cost money and that they don't grow on trees.

4. Help your child count out money to give away.

To help teach the concept of giving, have your child count out some money from their piggy bank. It could be just a couple coins. Take your child to a place that is taking donations and allow him or her to put the coins in the bucket.

You can also do this at holiday time with the Salvation Army bucket outside the grocery stores, or with cleaning out old clothes and toys and taking them to a donation drop off.

Help you child understand that they are helping people in need when they give back.

5. Communicate and make it fun.

As we become adults many of us often stress around the topic of money. I know I do. But as a parent, I don't want my children to grow up with a negative view of money. I want them to see it as a wonderful thing that will allow them more freedom and control in their life. 

Communicating openly though is a good way to give your child an awareness of how money is used. Allow your child to help you pay bills by putting stamps on the envelopes or stuffing the envelope (or clicking "pay" on the computer screen!). Explain that ATMs aren't an endless supply of money, or how your credit card works.

Simple, light conversations around how money is used can be a great value for your young child.