August 14, 2014 12:00 am | Author: investright
Understanding how and why to save money, is one of the most
important lessons that children need to learn.
It is never too early to start teaching children about
money. When they are young, you can teach them the difference between coins and
other sizes of currency. Once children grasp this concept, you can start to
incorporate more learning experiments into your children’s daily life.
The summer is a good time to have these conversations with
your young children. This way they can carry these lessons into school life
where there can be pressure to buy or ask for things their friends want or
When they are young, you can start with simple
conversations. At the grocery store, you can show your child how one item costs
more than another, and how to determine which item has more value.
You can also talk to them about the differences between
“needs” and “wants”, even at a young age. For example, you might want to show
them that milk is a need, and explain that it has multiple uses for the whole
family – in cereal, coffee, cooking, etc. After that, you may want to say that a
toy car in the aisle is a want, because it’s not something that can be eaten
and it’s not on the shopping list.
There are many more fun activities, exercises, and concepts
that you can find online or in parenting books. You can also ask your friends
to see if they are teaching money concepts, and if so what is working and what
Since children will all have different spending preferences,
the key is to listen to them, observe and learn from them. Then you can teach
and guide them to understand the importance of building a nest egg.