In today’s day and age, it’s more important than ever to teach kids how to manage money. Check out these important money lessons for kids!
Food is expensive
Perhaps more relevant in 2024 than ever – food has gotten expensive, and we’re sure this comes as no surprise to parents reading this blog article. Teaching kids about the rising costs of groceries can encourage them to avoid wasteful eating habits. One good lesson is to have your child pick out groceries at the store for a set amount of money (say, $20). They’ll likely be shocked at how little it buys these days, and this can help to illustrate how quickly food expenses add up!
Make it relevant
Younger kids may not understand what $20 actually amounts to in 2024, so it can be helpful to frame monetary values by referencing things they are already familiar with. For example, the fact that many of the most popular video games are priced around $60 brand new can help to provide a reference point that makes sense to younger kids. Drawing these comparisons also helps to encourage your children to be grateful for the possessions they already own – many of which are expensive. Which leads us to…
Protect the phone
For most kids, their prized smartphone is the most expensive possession they own. We often hear parents comment about how their kids treat their electronic devices like toys, leading to frequent cracked screens and costly phone replacements. The reality is that in 2024, everyone has a literal microcomputer in their pocket at all times – and it can be easy to forget that these devices cost upwards of $1000 or more. Encouraging your kids to take care of their pricey (and fragile) possessions will help teach financial literacy and money management.
Offer an allowance
A small weekly allowance is a great way to teach kids about the power of saving. By giving your child a small amount of money to either spend or save, you are encouraging financial independence and smart money management. Consider this: if you give your child $5 each week, try framing these increments with some of the reference points we discussed earlier. For example, their favorite gaming console costs nearly $600 – it would take them nearly two years to save up for that PlayStation! Drawing small comparisons like this can really help to frame the value of money while also teaching kids to be grateful for the things they already have.
Let them make mistakes
Another good reason to give your child an allowance and encourage saving? They will likely make some mistakes along the way. It can be difficult to save towards a future goal, and most people will recall times in their youth where they “blew all their money” on a frivolous purchase. The thing is – this is actually a good thing. After all, it’s much better to make a financial mistake at this age rather than later in life when the stakes (and dollars) are much higher!
