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Teaching Kids Everyday Money Skills

money lessons-post tot

Money Lessons: Post Tot

Those 5–7-year-olds… sometimes a handful but ever so curious! And they are starting to get really interested in money, mostly because they now understand a bit about shopping. I haven’t met a six-year-old who doesn’t love a trip to the toy store. This is a great age to start teaching the foundations of good money habits and a bit about how the world works…

They see parents and caregivers go to work, they may have even been to the bank, they understand how to pay for things. Here are a few activities to connect all the pieces…

  1. Pull out any item from your pantry or junk drawer. Ask your child to look at the item and answer the following questions… Who made that? How many people do you think helped to make it? If it wasn’t made here, how did it get to my pantry? The idea is to get them thinking about the chain of events. For example, a loaf of bread. To get to your pantry it requires a farmer to grow the wheat, a mill to grind the flour, a baker to bake the bread, a trucker to deliver it to a store, a cashier to sell it to you. This activity gives your kids an appreciation for jobs and the economy!
  2. Good old-fashioned savings jars are the best way to illustrate earning and saving in a physical way, something they can see. Whenever your child gets some money in hand, be it chores, allowance or a gift, guide them to split it up into 3 jars labelled Spend (money to buy things), Save (money for later) and Give (money to share). Help them decide how much goes in each jar. It could be as little as a dime! The goal is to practice saving for multiple things at once. This is a better habit than a singular focus to save for one thing.

Enjoy teaching your eager 5–7-year-olds about money. Every effort you make helps them to build smart money habits that last a lifetime. Be part of their financial education. It makes a difference!