Teaching About Money

I made it interesting for my son when he was younger by using real money and making a game out of it. Once we'd gone over the values of pennies, dimes, etc., I'd put a bunch of coins in a pile and tell him to show me a particular amount. If he could, he got to keep it. I think knowing he got to keep it motivated him to try and remember. He's 12 now and at the grocery store I have him figure out differences. I'll ask him if it's cheaper by the ounce to buy a larger size box of a particular cereal than the smaller box. He used to assume that bigger was cheaper, but has learned you need to do the math because sometimes you get a better deal buying 2 smaller boxes.

I would set up a play store at home. Put prices on her toys and get a calculator. Let her 'shop' with real money at home. It's great for interaction and learning.

If you don't want to use real money, the teacher supply stores have some very realistic looking money. I sub teach a lot in first grade and we are counting money now.

Use your daily routines to teach about math...not just money.

My daughter is 14 now. When she was little, I started very simply with, "I need 6 lemons please" and she would assist me in counting products etc. As she got older, I would say...."those grapefruits are 3 for a dollar....how much does just 1 cost? Simple math "games" help tremendously in the early years. You can use the play money at the grocery or wherever you are for her to count out the money for you. Keep it simple and keep it a game so she wants to learn.

I did not have a calculator around for daughter to get an automatic answer. We get hooked on the calculators and then forget the basics...

As they get older - you can take them to Consignment shops... let them turn in toys at one price, and then use the store credit to purchase others!

Hi,

My husband and I are going through Financial Peace University by Dave Ramsey and he has some excellent ideas to help children understand money and the management of it at an early age. He suggests giving them a dollar at the end of each week for each chore they have successfully completed all week. For example you give your daughter 5 chores which means she'll get $5 at the end of the week. Once you give her the money you bring her to her room where you have 3 envelopes designated to "Giving, Spending, and Saving". That way she isn't getting an allowance, she's working for her money and getting a "commission" as he calls it. This will also teach her to save for the things that she really wants.

I don't know if this is the kind of advice that you were asking for, but I have found it extremely helpful. I'm working with my 5 year old on it now.

Hope this helps.
J.

Also second Dave Ramsey's program....