Fun ways to teach kids about money over the holidays

It’s never too early for kids to learn about money, and the school holidays provide a great opportunity to teach your children valuable lessons that will set them up for a bright financial future.

You don’t need to be a financial expert to introduce your children to basic financial concepts like saving and budgeting. But you do need to take the time to get them started.

Look for ways you can incorporate money lessons into everyday life. At the beginning of the holidays you may want to set an activities budget and discuss it with your children. Offer them a selection of options and costs for each activity, and let them work out which they would like to do, within their allocated budget. For example, you might explain that going to the movies costs more than a trip to the park to buy an ice cream, and that if they choose the more expensive option, they will have less money left over for other outings. This can help children learn about the value of money and the trade-offs that come with making choices about spending.

Another way to educate your children about managing money is to give them some of their own. Pocket money gives kids a practical way to learn about saving and spending wisely. Some families set an allowance by giving a dollar for every year of the child’s age, i.e. a six-year-old will receive $6. Do what you’re comfortable with, and can afford. Encourage your child to create money goals, such as saving for a toy or a special outing, and help them keep a record of their income and spending.

When you’re out and about with your children over the holidays, look for simple ways to teach them about money, like asking your child to work out the change owed on a purchase. If you go to the store, let your child hand the money to the shopkeeper and ask them to count the change.

Taking your child along with you to the bank is a great way to introduce them to the concept of interest, and illustrate how regular amounts deposited into their account can add up over time. If your child doesn’t have a bank account, think about opening one for them. Most banks offer banking packages for kids to get them started.

For more useful hints on how to teach your kids about money check out sorted.org.nz. There are easy tips for teaching your kids about money, so you can teach them the principles and skills they need to manage their money in the future. It’s a free, independent and impartial source of information on money matters.

So when planning how you’ll keep your kids entertained these summer holidays, set aside some time to incorporate some fun and simple ways to learn about money. Even simple lessons now will help make a big difference to their financial future.