Staying indoors with the kids is an excellent opportunity to talk to them about money and how it works! We've gathered a few ideas to help get the ball rolling.
What better way to learn about money than to spend it! Ok, we’re not telling you to give the kids your credit card and head out on a (virtual) shopping spree. You can, however, create your own store within your home. Start each child off with a set amount of money. Stick price tags on different items around the house and have the kids go shopping. Once they’ve picked out everything they want, let them add up the prices. Who got the best bang for their buck? Who stayed within their budget on the first try?
Got older kids? Talk to them about sales tax. Have them look up your local sales tax and add it on to their total.
Want physical money to play with? Try using these printable sheets of play money from dadsworksheets.com.
Consider Commission Rather Than Allowance
Whether you’re a household that believes in allowances or not, consider choosing to pay your child for tasks they do around the house. There could be different prices set for cleaning their room, doing their laundry, setting the table, etc. This will help teach your child the value of their money as well as make their purchases extra special knowing they worked hard for them.
Whether you have a young child who does dishes for money or a teen that works a part time job after school, talk to them about setting goals. Is there something they really want to purchase? What are they saving their money for? Visuals can make this process easier and more fun! Draw your own goal chart and list the starting point and ending point. Your child and/or teen can then measure how far they’ve come and how close they are to their goal.
Teach the Concept of Interest with Pennies
To teach the idea of basic compounding interest, give your child one penny. Each day after, give them interest equaling the amount they already have. Ex. Day two, they’ll receive one penny (because they have one penny). Day three, they’ll receive two pennies (because they have two pennies total from day 1 and 2), Day four, they’ll receive four pennies and so and and so forth.
As long as your child keeps the pennies, they’ll continue to receive interest. But if they spend, lose or give away any pennies…they’ll lose out on interest!
Got a teen in the house? Have them try our interest crossword for a fun way to practice interest!
Look into scholarships
Many teens miss out on scholarships because they didn’t apply early enough. If you have a child headed to college in a few years, start looking now! Many scholarships are available to high school students, regardless of what year they’re in. Talk to your teen about which schools they’re thinking about attending and start adding up the costs. Compare this number to any college savings you currently have. This will give you an idea of how much money in scholarships you’re looking for. When you have numbers laid out and a plan set in place, it can be easier to reach your goals.
Calculate the Tip
We may be stuck indoors, but the occasional take-out dinner doesn’t have to end. Whether you’re ordering pick up from your favorite local restaurant or you’re using a delivery service to bring the food to you, let your child calculate the tip! Give them the total and the percentage you’re planning on tipping and let their brain do the rest!
Bring Out Board Games
Have a family game night with some money driven board games. Games such as Monopoly and LIFE are great for understanding how money works. The kids, no matter what age, will be learning money skills without even realizing it.
Content provided by: Policy Genius