Things Your Preschooler Should Know About Money
For some parents, the thought of teaching preschoolers about money may seem silly or too soon. However, this is one of the most vital ages to begin developing important lifelong habits regarding saving and spending money.
Here are some simple money concepts that you can introduce to your preschooler.
What is Money?
The first lesson preschoolers should learn about money is what it is and how to use it. Start by explaining that money is what people use to buy things. Without money, it’s not possible to purchase items you need or want. The next time you order something online or get takeout from a restaurant, show them how you pay for things.
Even though actual currency isn’t used as much as it used to be, children still need to understand what each piece of money is and how much it is worth. It is helpful to create fun activities they can participate in to begin learning the value of a penny, nickel, dime, quarter, and dollar.
What is the Value of Money?
While teaching your preschool child about the value of specific coins and bills, it’s also wise to teach them how that value pertains to items purchased. For instance, if your child likes carousel rides, explain to him or her that it requires two dollars to ride the carousel. Or, that it requires a dollar to buy an ice cream cone.
Additionally, it is important to highlight the value of things that are free. These could include playing with their friends, going to the library, or playing at the park.
How to Earn Money
Understanding how to earn money is also a valuable lesson that kids should learn as early as possible. Explain to them that by working, you make money. Describe what you do for work and show them examples of other people at work in your community. Point out that people earn money as waitresses, law enforcement officers, librarians, sales staff, doctors, business owners, and in many other ways and professions.
Spending, Saving, and Giving
Preschoolers are the perfect age to begin receiving an allowance. Make sure to tie the allowance to an actual activity or chore. For instance, if they make their bed, they’ll get a quarter. Or if they help unload the dishwasher, they’ll get two quarters. From this allowance, have your child organize their money into three categories: Saving, Charity, and Spending. This will help teach your child the importance of saving, the value of giving, and how to manage his or her own buying decisions at an early age.
Setting Financial Goals
It won’t take long for your child to understand how financially limiting an allowance can be – especially when there is a new pricey, cool toy on the market. This is where you teach your child the importance of saving so that they have money available when something they really want comes along. And because they had to save for it, and delay that gratification, it’ll be more valuable to them in the long run.
CAMPUS Kids Account
Open a CAMPUS Kids Account today and get a $5 cash bonus3! With free online and mobile banking, you can teach your child how to manage their money from home. Plus, interest is earned on every dollar up to $100,0002 so they can watch their money grow every month.
By Campus USA at 3 Apr 2020, 16:46 PM