Drop by drop makes the ocean! Teach your kids the importance of financial management before anyone else does. A parent is the best teacher and guide. Remember, they mimic what you do, so be smart!

It is crucial to make sure that our children know how to save and manage money for themselves. Teaching your kids the importance of money from a young age will help them evolve financially strong and stable later on in life.

Teaching preschoolers the Value of Money

1. Begin with starting early. Start teaching your preschooler about money as you tell them about everything they will see and face in the future. You can start with just telling them what money is? What money can do?
2. Get them a piggy bank. This will help foster money collection habits. They may not understand the real money-saving idea, but it can be fun and a task. Piggy banks will develop curiosity and money-saving skills in them.

3. Use a transparent pot or jar to save. Piggy banks are cute and attractive, but the kids don’t get to see their reserves. Using transparent glass jars allows them to see their stash piling up. Yesterday they had a nickel, today it’s a nickel and a quarter… And it’s only increasing.
4. Educate and amuse them with games that focus on coins, cash, and spending. You can teach them how to place coins in order…. penny …nickel… dime and quarter

Teaching Middle Schoolers the Value of Money

5. Talk about money. Middle schoolers are grown-ups enough to understand the importance of money. They know money can buy stuff. The best way to teach kids about finance is to include them in the conversation. It can’t be one talk or two, but, it needs to be a part of your everyday conversation. Talk to them openly and answer all their questions.
6. Instill a practice of saving. Encourage them to make monetary goals and plan their possessions (no matter if they are a few coins only) accordingly. 
7. Give allowances. Decide the right amount of weekly or monthly allowance. Teach them to save and use it wisely. Make it a rule not to give an extra allowance if unnecessary. 
8. Give commissions. Fixed commissions and incentives should be allowed. Make them do chores for commission. If they give their best in tasks, reward them with incentives.
9. Set limits. Fix the numbers. Clarify the kids they have a fixed allowance. They can only spend xx percent of their allowance in a day or a week. If they want to spend more they can take out x percent loan from their piggy bank. This is a cool bank that helps kids divide up what they earn into different categories.
10. Take them shopping. Show them the things costs money. If they wish to buy one thing they should resist buying the other. This will enhance their prioritizing skills. 

11. Help children learn to make wise spending decisions. Comparison shopping is to be taught next. If they like the toy car costing $5 and a swimming pool costing $60. Help them to decide what is the right choice for them. Ask related questions. Help them to buy based on their requirements.
12. Coin collecting as a hobby. Show them how coin collection can be an interesting hobby. Teach them about the worth, and importance of each coin.
13. Avoid impulse shopping. Teach your kids how saying no to their small impulses can result in big savings. 
14. Emphasize the value of giving. Now your kids have learned to save dimes. Teach them to give from their share. Introduce them to charity centers, or their peers and neighbors in need. They’ll feel how donating affects the person and donor. They’ll feel peace of mind with their money.
15. Include juniors in simple monetary decisions. Make them sit at the discussion table. Listen and implement their feedback and suggestions.
16. Give them coupons to draw with each task. Begin with giving handmade coupons for chores. Gradually introduce them to real coupons. They’ll learn to benefit from shopping coupons while purchasing in the real online and offline market. 
17. Educate short-term versus long term financial pursuits. Teach them long-term goals and short term monetary decisions. Share the experiences you had with your monetary goals and give them solutions and tips to bypass those errors.
18. Have your child save up for something. Ask them what they would like to buy if given a considerable amount. For example, they asked for a bicycle. Get them to save for their bicycle or maybe 1/2 of their bike. When they buy a bicycle with their money, nothing can be more satisfying and exciting the day you hand over your hard earned cash. This will make your child’s savings meaningful to them.
19. Enlist your child in a seminar or class at your local bank. Make a trip to the bank event. Many banks give lessons to kids regarding financial planning and regulation. Taking them to such classes will inspire them to regulate their allowances. This can take their money management goals to the next level.
20. Teach them hidden costs. Teach them hidden costs from their day-to-day life. Like electricity bills, water bills, heating doesn’t come for free. Teach them how they can save by cutting down their consumption a bit (obviously when not required)
21. Have a “no spend” day. Celebrate a no spend day every month. Make it a habit for them to not spend at least once a month on anything. Ask them to record what they saved on this day. 
22. Teach the three tenets: giving, saving, and spending. Explain to them the importance of each. You can do this by making 3 jars. Name them ‘saving’, spending and giving. Tell them how all three jars should be balanced without making life uncomfortable. If you’re doing this, you are shaping them for the real world in the coming future.
23. Yard sale. Yard sales are interesting and beneficial. Put your kids in charge this time. Supervise them in choosing what is not of use and what to keep. Let them set the value on their own and make their own decisions. Let them negotiate with customers over prices. But yes, please keep a watch. Teach them the importance of negotiation and trade.
24. Discuss wants vs. needs. Make them sit with you to find out what are luxuries and what is needed from your next buying list. Take their input. Guide them how by just turning down a few luxuries you’re making a big impact. Teach them scaling how keeping a low hand on luxury can give you more required stuff in the same budget.
25. Have them track spending.  Your kids may not be old enough to use technology and monetary apps. Teach them to write down their spending, savings, loans, and charity in an old-fashioned way. Randomly ask them about what they did with particular pocket money. The child will find it in the records. Tell them this is why recording the budget is crucial. They could use a ledger like this, or even a regular notebook.
26. Leave room for errors. Teaching kids financial planning and setting monetary goals is a cumbersome task for you and the kids, both. Let them do acceptable mistakes (but in-deliberately). Rectify these errors and guide them the right way. Always be soft when teaching any life lesson.
27. Behave as their financial advisor. Your kids shouldn’t stress over a low budget. Spending wisely and living miserably are not the same. Tell them they can ask you or any adult in the family for a loan. They should be encouraged to repay from their next allowance.

Teaching Teenagers the Value of Money

28. Be A Role Model. They mimic what they see you do. They won’t save when they see you spending outside your means.
29. Teach them how to be satisfied with what they have. A great lesson is learning to be content with what you have and not always craving others’ assets.
30. Get them the responsibility of managing their own bank account. Now that your child is a teen, they are ready to take on a simple savings account of their own. Many banks and credit unions offer programs for teens.
31. Get them saving for college. Talk about what they are going to do for college and help them understand how much it will cost. Chat with them about the importance of scholarship money and getting good grades to ease the financial burden of college tuition.
32. Guide your child about credit cards and usage along with the negatives associated with them. Teach them about interest rates and compound interest and how much something you buy with a credit card will actually end up costing with interest.
33. Familiarize them with compound interest when saving. Teaching them this can be magical as they watch their savings grow.
34. Help them find ways to earn money. Show them ways to utilize their skills by doing odd jobs, babysitting, freelancing, walking dogs etc.
35. Bring the kids in the room when you and your partner have budget talks. Include them on figuring out the budget for the month and let them see how your hard earned money is spent.
36. Give cash for celebrations like birthdays. Let them buy the gift of their choice by managing the money you give them. They can pick to spend, save or donate.
37. Familiarize them with investing and the stock market. Give them a general idea as to how the stock market works and the ups and the downs. Have them follow a stock of their choice.
38. Introduce them to technology and budget apps. Let them get an app on their phone that can help them track their finances. Maybe a fun allowance app that makes it fun for them to save and watch their money increase.
39. Review basic math. Sometimes a simple math overview is important. Teens learn such high level math these days that often the basics are forgotten that are needed for every day finances.
40. Remind them that things are just things. Help them understand that at the end of the day material things aren’t what matters. Remind them to spend time out in nature and with friends and family regardless of how much money they have. So many things they can do costs little to no money and can be so much fun. Check out our article on 100 Fun Things To Do With Kids This Summer…and Many are Free!