Money is an essential topic of discussion in today’s life. Everyone is quite aware of it. As a parent, we also want to make our child learn about it so that they get to know several other things associated with it such as saving, spending, and recognizing currency. Well, some parents thought that teaching preschoolers about money are not appropriate as the kids may come into the clutches of anxiety and stress. They might be right at some places.
But, there are two sides to every coin. Keeping that in mind, we will try to bring in our perception regarding teaching preschoolers about money. So, read this full article, and let’s understand what’s best for your kids. In this guide, we will offer some facts and other related things to the topic.
Although many of the parents articulate that child of 7 years age does not understand the money concepts. But, research has revealed that many money habits are regulated by the time a child is 7 years old. Furthermore, researchers at the University of Wisconsin-Madison show that the concept of value and exchange start developing in kids by the age of 3. So, if you are worried about the consequences of teaching preschoolers about money then it’s just in your mind as many facts and research show the real truth.
We hope that till now you cut the fear of giving money education to your child. Now, let’s move into other parts of the content that will make you aware of the positive outcome of education.
Reasons to start teaching preschoolers about money
Everyone has witnessed the joy in a four-year-old kid’s face while receiving a dollar bill. The delighted face indicates that the preschooler is very well aware of money. Not only that, but it also indicates that the kid has a curiosity to know more about it. They are ready to learn everything that covers this topic. As a parent, we should try to grow their interest by talking about their interest in money, by answering their questions about money or by providing them the best money mindset / money making kid books.
This way the preschooler builds a strong foundation for money that will help in the future.
In the post, we are offering some lessons that you can teach to the kid.
- Try to teach money does not grow on trees.
- Sometimes waiting is the only solution.
- How you can share the wealth.
- Never think that wants and needs are similar.
Together we will teach the children about these key concepts. So, let’s make them more curious and correct all these assumptions preschoolers think.
1. Teach Money does not grow on trees
Trees grow money is the oldest assumption that we all think of in our childhood. Today’s kids assume that the plastic card grows all the money. We need to make them aware that money comes from lots of hardship. So, it’s better to save from the money provided. If it is gone before the completion of the period then it’s gone. This will make them learn to live with their means.
Lessons To Learn
- You cannot ask for more money if spend them early.
- Earn more money through work.
- Limitations to buy things from the market.
How to teach Kids these lessons
During this phase, the kids prefer to enjoy some fun activities. So, we will try to do the same to make them aware of the money concepts.
Begin an allowance System
If the kid is three to four years old then it is a wonderful time to start playing this fun activity with the kid. First of all, provide them their own money at a significant amount that they can see and understand. It would be best if you provide them $3 – $4 a week according to their age. Now you have to follow the further procedure.
Once providing them a significant amount, you have to arrange three clear jars and write on them spend-save-give. As they are quick learners at this stage so we try to manifest them in a clear possible way about the money concepts. After performing all these activities, now you need to help the kid to distribute their allowance into the jars each week. Ensure to get a couple of rolls of quarters to help the preschoolers divide their allowance.
Shop with your Kids
Make a walk through the grocery store with your kids. It’s the best way to make them aware of the cost of the different products and the snacks that they eat. Don’t try to put things all together as they will be lost in the middle. So, avoid situations like telling about grocery budget. Rather than, go to kids’ favorite place, snack aisle, tell them they have $5, $10, and $15 and help them to get snacks at this prize. You can also do some maths here like if the kid spends $3 in the store then how much would left.
Extra Money for small jobs
At times, the preschoolers want some toys like cars and dolls. So, instead of scolding, tell them to do some small jobs for extra money. Show them some options to do. Ensure that the tasks should be age-appropriate which they do on a normal basis.
Now, the interesting part is that set up a board that states “for hire” if they always ask for money. The activities in which you can indulge your kids include sorting dirty laundry, picking up dog toys before you mow the lawn, or sorting empty bathroom trash cans.
Instead of this, you can also take care of the entrepreneur mindset of your child by inspiring your child to collect the recyclables product from the home and return them at the stores to get deposit credit or start a lemonade stand.
2. Sometimes waiting is the only solution
The children need to learn that sometimes waiting is the only solution. Mishel first brought up this idea with his experiment that measured self-control in preschoolers. In this experiment, the children have given two choices that they can eat one marshmallow now or if they can wait then they will receive two marshmallows later.
During the experiment, Mischel focussed that those who were able to wait for two marshmallows trying to develop some creative ways to keep themselves away from gratification. For this reason, it was manifested that self-control will make the kids more focused on the pursuit of goals in adult life.
Adding on, Stanford also articulates that kids who able to avoid instant gratification for a better result will develop better SAT scores, income, education level, lower BMI, divorce rates, and addiction rates. If the child does not have it inherently then you can develop it by starting early. This skill will surely make them aware of several things including: live within their means, avoiding debts, and save for the future as adults.
Lessons to Learn
- You need to wait before making any purchase.
- With good patience skills, you may get something better way back.
How to teach kids these lessons
Teaching preschoolers to wait for things can be quite complicated than making them indulge in some activities. But you don’t need to be worried as we are in this all together and surely provide better ways to make them understand the essentiality of this skill. Now, let’s get started with this section.
First of all, we need to try to say things at our child’s level. If you start like long-term power of compound interest of saving for their college is beyond their comprehension. So, try things smaller with slow and steady speed. Consider first the shorter-term goals that they can also understand and you can celebrate the little winning of your preschooler. Always keep in mind to leave a positive impact on your child for every task that you provide to them and thus carry out the further procedure.
Always help them to pick something and make it visual
The parent should help to pick some small goals for the child that they can achieve within a few weeks. Now try to create a plan to save for it and motivate them every time to put more effort and money into their desired objects and goal.
To do so, think about all the ways for them to reach their goal. Then create a visual chart for the child to record they are putting money towards their goals or not. This chart visualizes their progress and the child becomes more attentive to achieve the goal.
Teach how to distract themselves from spending too much
In the earlier instance, we have seen how the kids use distraction to distance themselves from the gratification of a marshmallow to gain one more in the future. So, you need to make them practice out of sight, out of mind even when the thing that they want is right in front of them.
But how you can do it, don’t panic, just redirect the child when they ask for something they cannot have right now. For instance, make them remember the words to their favorite song, ask them to count 0 to 100, or anything like dancing and singing.
Alternatively, you can also show that you eagerly want pizza but cannot have it due to lesser savings. Then, ask them for help to redirect you and they will surely help with some ideas to avoid the thought of pizza. This way, they also feel joyous for granting help to elders.
The parent needs to be consistent enough with all these activities. If you in between the procedure becomes loose and weak then they will always get depended on you and thus it disturbs their focus.
3. How can you share their wealth?
To start this activity, give the preschoolers some money and then tell them to give it to someone who is in more need. This way kids develop their mindset and get to know that some people in the world need it more than them.
According to studies, the people who tend to do charity experience a more joyous and healthy life. This also develops a generous corner and the kid starts feeling that they are more privileged to have the essentials in life as some people are not getting it.
Lessons to Learn
- You can make someone’s life better by giving.
- Try to add some colors to the lives of the people who could not get the essentials for living.
How to teach Kids these lessons
You need to go through all these points to teach kids these lessons.
Teaching Preschoolers About the charity by reading some books
With the reading of charitable books, the children get to know about the lives of others. They feel motivated at the same time through the glimpse of the joy of giving. Tell them stories of rags to riches, so that they can get inspired. You can check out the books like The Spiffiest Giant in Town by Julia Donaldson, and Should I Share My Ice Cream?
Other than these books you can also check out Best Money Books for teaching preschoolers some money lessons.
Choose a charity that speaks to them
Now choose the charity that falls in their interest so that they indulge more in giving and helping someone to have a better life. You can also check local charity programs that are more focused on non-monetary donations like some clothes to donate, pet foods for the unsheltered dogs, and so on.
Make sure that your family’s money is used more appropriately. For instance, organizations like Heifer International, Room to Read, World Wildlife Foundation make use of money in a more suitable way. You can donate there a flock of chicks for $20, A year of school learning of a kid for $50, and so on.
After that, make a record of what percentage of the money they are providing to a charity and keep them aware of the reason why they are doing it.
4. Wants and needs are not similar
It is a very essential point of teaching preschoolers about money. If you don’t include this topic to teach kids about money then probably all these mentioned above lessons will way over their head. The need to know the difference is essential to make a better spending decision. Like all these said activities, this too needs to be started earlier for building a strong foundation for their future.
Lesson to Learn
- Needs come under the essential things while wants are everything else.
How to teach kids this lesson
It is no secret that 95% of preschoolers ask for their wants as they are not bigger enough to understand their needs. So they think that wants and needs are similar. But, we need to make them aware of these two words that will create some strong foundations for the future and teach them small things in a play full manner such as make them take a no spend challenge.
Take an Example
Children learn from imitating us. So, we need to change our habits first and try to exclude wants from our needs. Then, try to show them the difference between wants and needs regularly. So, they do not regard it as a lesson but as a day-to-day activity.
You can do it by pointing towards the top that you want but now toilet paper is essential to have. And then, purchase the toilet paper. This way the kid gets to know that needs comes before wants.
Choose the correct word
Now, if the child comes to you and tells you that they need something. Try to make them choose the correct word by asking why do you want it? Do you think you really need it, or do you just want it? This way they conclude that it is not the need but some other wants.
Yes, teaching preschoolers about money can be a tough task for you. But with these lessons and techniques, you will witness a generous response from the children. You will be delighted to see the outcome of the journey when they take small steps to the monetary world. Hopefully, you like this article. We would suggest you learn such amazing content on kids and their growth by enabling the notification.