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Finance 101 For Kids – Essential Steps To Follow When Teaching Kids About Finance

Every parent must ensure that the future of their kids is financially secure, with the help of Finance 101 for Kids you will be able to know exactly where to get started in instructing and planning for your kid’s finances.

Whether you are a single parent or not you should start early in financially preparing your child’s future, that is why it is necessary for you to carefully go through this piece of content So that you will implement it just for your kid’s sake.

What is Finance 101 for kids

Finance 101 for kids

In today’s world being financially prepared is one of the greatest gifts from parents to their lovely kids.

I believe no good parents will be happy to see their grown-up children still being financially dependent on them or seeing their grown-up children being slaves to Dept.

To avoid all these tragedies befalling children when they grow up, There is an adage that says “Catch them young”

it is essential to teach your kids about finance while they are still young. 

This is where Finance 101 for kids comes in,  regarding the meaning of it, it is all about grooming kids and teaching them about finance or money management at their tender age.

It also involves using simple concepts to teach kids about finance so that they can easily comprehend it and put it to work in their day-to-day activities.

Finance 101 for Kids also involves teaching kids some financial terms & languages such as debt, loan, interest rate, etc.

How to make finance teaching more understandable and simple for kids

In teaching kids about Finance stuff there are some methods of teaching you will implement which will result in the kids misunderstanding you or finding more harder to comprehend what you are teaching them.

That is why it’s more advisable to follow those guidelines kids will find more easy to understand.

Bear in mind that they are kids and their minds are still tender.

The following will help in teaching kids about finance in the appropriate way.

Level/age of the kids

Firstly understanding the level and age of the kids will help you to know the right strategy to implement.

The understanding of kids between the ages of 1 to 5 years is not the same as kids between 7 to 14 years of age.

When you have understood their age difference then you have to teach them about Finance according to their ages eg. For kids below 5 years make use of funny finance-related objects to teach them.

Then for kids from 9 to 14 years, you have to use some simple concepts to teach them but don’t make it look so childish to them.

Read more: Finance For kids: Parental Guidance For Teaching Their kids About Finance.

Make use of some objects

As you are teaching them you can make use of finance-related objects to illustrate to them, eg if you are teaching them about savings then you can show them different types of savings boxes.

Also, you can show them writing objects they can use to pen down and calculate their expenses over the day, week, month, or year.

This writing object can be a book and pen, there are books made specifically for calculating expenses, you can go ahead to show them some of these books and direct them on how they can make use of them.

By doing so, you are making the teaching more practical which is best and easy for kids to comprehend.

Give some simple examples 

By showing them examples you are showing them the steps to follow and this is one of the easiest ways for them to understand what you are teaching them.

You can show them examples of ways they can save money for themselves, you can show them examples of how they can calculate and write down their expenses 

Use simple languages

Instead of using big grammar, it will be better to use simple language and illustrations which will not look so hard for the kids.

Eg instead of saying;

” Diversification is a risk management technique that involves spreading investments across various asset classes to reduce exposure to any single investment or risk”

You can say;

Diversification is all about not putting all your money in one place. It’s like having different types of snacks in your lunchbox so if you don’t like one, you still have others to enjoy.

By simplifying your grammar those kids that fully understand what you are trying to narrate to them.

Try to be friendly 

When teaching those kids about finance,  act more friendly to them, and let not an iota of harshness be found in you.

By doing so this will make those kids to freely ask you questions without feeling intimidated by you.

How to make Finance teaching to be fun and engaging to kids.

To achieve this mission of making finance teaching to be more interesting and engaging for kids follow the following steps

Ask them questions

In teaching kids about finance 101 for kids you have to ensure that those kids are grabbing the things you are teaching them, you can do this by asking them some questions regarding those aspects you have previously taught them.

With them answering those questions the class will become more engaging, interesting, and fun for all.

Give room for asking questions.

Many kids may have some questions to ask but some of them may feel so shy or afraid to ask those questions.

You can quench this from happening by earlier informing the kids to ask you any type of questions they want without being afraid or feeling shy, that you are ready to answer them.

This will make those kids feel free when asking any questions, by so doing the teaching class will become more lively and engaging.

Quotes for finance for kids 101

Some of these quotes can motivate and encourage kids they are;

Debit cards and ATM cards are good ways to get money out of your savings or checking accounts.

Although Debit cards look like credit cards they are not credit cards.

You can use a debit card to purchase goods in a store, just like when you are using a credit card.

      – Andal Walter.

A penny saved is a penny earned

   – Benjamin Franklin

The actual goal of financial education is never to make kids rich but to give them the basic skills they need to become financially responsible adults.

UNKNOWN.

Don’t save what is left after spending; spend what is left after saving.

  – Warren Buffett

Perfect book for teaching kids finance

There are many popular books out there you can use but the most recommended book is “finance 101 for kids” written by Andal Walter 

Walter Andal has a master degree in business Administration with a concentration in international finance from the University of La Verne in California.

He also obtained a Bachelor of Art in management Economics from Ateneo de Manila University.

Purchasing his book for your kids will be one of the gifts you can give to them.

This is one of the financial book children can not afford to miss.

Everything concerning this book is superb, the illustration is easy for kids to understand.

Many parents that bought this book for their kids are dropping positive reviews on how the book helped their kids.

You can go ahead to purchase this book from Amazon now in different format you wish.

Real-life story Regarding finance for kids 101

A man used to do this whenever her kids reached 12-14.

Whenever her kids are in their holiday period she will give each one some money and they will use the money to cook.

Once they are given to them they are the ones to plan on what to cook.

With the money they will go to the market to shop for everything they need which can include some protein, veggies, fruits, etc.

What they cook today will not be what they are going to cook the next day.

Sometimes they will have $15 or $25 to plan and budget what a family of 4 will eat.

With this method we had some interesting meals, it showed the kids how much a meal can cost to prepare.

As they continued with this within some time they were able to figure out a meal below $10 and find some alternatives.

Then if there is any remainder money they will keep it for themselves

This method was working perfectly for my kids until they became teenagers and felt it was dumb.

Remember, we are still discussing about finance 101 for kids.

Note: This story is a life experience a man shared on how he prepared and teaches his kids about budgeting and planning, if you find this interesting you can also implement it for your growing kids.

Cursions to take when teaching kids finance

In this Finance 101 for kids, as a parent or financial instructor for kids, there are some precautions you need to take so that you will not misuse or abuse those kids in the process of educating them.

 These precautions include the following

Don’t overdo it

Ensure you are not overdoing it in a way that will be wearied of the teachings.

There is time for everything so don’t use the time meant for them to play as kids to teach them about finance.

It will sound like you are denying them from playing.

Allow them to enjoy their childhood without pressuring them.

There are levels of things to leave in Their care depending on their age.

Don’t give them some financial task they will find so difficult to handle or those tasks that are beyond them.

Eg with the story I told earlier about kids planning and budgeting for a meal as you can see with their age they can handle the task.

Don’t give this task to kids below 10 years it will become an abuse for them because they are very tender to handle it.

Don’t make it a burden to them

Finance 101 for kids is not supposed to be a burden to the kids and don’t make it become one.

Finance 101 for Kids is all about preparing kids financially and teaching them the ways they can easily understand.

When all this stuff I disclosed here is rightly implemented, it will surely help your kids to grab those concepts of finance 101 for kids.

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