According to the Royal Economic Society, children who learn about money and are encouraged to save from a young age are more likely to continue saving as they grow older. Getting older kids and teenagers involved in your entrepreneurial journey can be a great learning opportunity. For example, discussing the process of How to Start an LLC with them can help instill important financial values and business sense.There’s no doubt that financial habits are learnt from childhood! If you want your little one to get off to a good start with their money, it’s vital you find ways to teach them that they’ll actively pay attention to. That’s why we’ve put together these super fun activities that highlight the importance of money, perfect for kids and parents to do together.
Create Your Own Shop
Roleplay is a brilliant way to blend fun and learning together, embracing your little one’s creativity. We love the idea of helping your child start their own make-believe shop, for example. During the set-up and running of their first business, they’ll learn valuable lessons about what money can buy, how to count their cash, and how loans work.
Start by setting up your business plan, which can include working out their shop name and what they want to sell. Then, give your child a budget to stick to. In this scenario, you’re working as the bank, giving them financial advice and aid as they set up shop. You can either price up items around your home that they can buy, or take them to the supermarket to purchase a few real items.
Teach them how shops make money by buying cheap and selling high. You can also give them the option of taking out a loan, which will fund the purchase of more products to sell, but that definitely has risks attached. Invite friends and family members over to test out the shop once it’s up and running, and introduce your child to the joys of watching their business thrive!
Learn With Monopoly
Monopoly is one of the most beloved board games in the world. But have you ever considered the learning opportunities of this fun game? When playing with your children, they can learn how to count money as well as the ins and outs of loans, with a really easy introduction to investing.
Monopoly Junior is recommended for kids aged between 5-8 and is a great way to get little ones interested in the game. With fun, children-friendly locations and quicker gameplay, it’s better suited for young children than the traditional Monopoly board game.
Bare Necessities Game
This game is better suited to slightly older children aged between 8 and 11. The bare necessities game involves writing up a list of must-have expenses, including:
- Electricity bills
- Food shops
- Rent or mortgage payments
Included in the list are also non-essential expenses, such as cinema tickets, sweets and chocolate budgets, and holidays abroad. Price up every item on the list, and give your child a budget that they can spend. Then, work through the list together to see what you’ll put the money towards and what you’ll skip.
Most little ones will go straight for all the fun, non-essential expenses, which is the perfect time to teach them why money must go first to the must-haves. Go through which are essential and explain why before working out how much money you have left. Now it’s time for your child to pick and choose between the luxuries. When the budget is neatly sorted, celebrate with a treat!
Build Your Own Bank
Like creating a shop, building your own bank is a role play activity. This time, though - as the name suggests - your child will be setting up a bank. Give them a stack or two of fake money, and take your role as their supervisor. A third person will be the client, asking to take cash out of their bank account and applying for loans. Your job is to teach your child about options like personal loans and bridging loans whilst helping them make the right choice for the client.
You don’t have to go too in-depth into the details of banking here. This is meant to be a fun introduction to how the system works and give your child a little knowledge that they can build on as they grow up.
Start a Clear Savings Jar
Lots of kids have piggy banks or are given pocket money, but have you considered the benefits of a clear savings jar? Being able to see the money build up is a far more visual way of learning and a whole lot more exciting! This long-term activity involves helping your child save money, picking up pennies and gathering small change to pop into the clear jar. Make them aware that on their own, the pennies don’t have much value, but as you collect more in the jar, the value of your money begins to grow.
Make it a weekly habit to count the pennies in the jar, going over what they’re learning regularly. Set money goals and give your child the option to spend the money when it reaches certain points on the jar or continue saving. This may not sound like the most exciting activity, but trust us, it works!
The sooner you start teaching your child about the importance and value of money, the better prepared they’ll be to go out into the world on their own. Hopefully, you’ve been inspired by the activities detailed here and are ready for some money-related fun.
About the Author
Kate Sheppard is a mum of two and enjoys writing about the ups and the downs of parenting and isn’t afraid to tell it how it is. She’s passionate about all things travel, countryside, children’s education, and women’s rights. Connect with Kate on Twitter: @KateSheppard90