How to Teach Kids About Money | Archived Episode

A large part of teaching your children about money is understanding their brain development by age and learning what concepts they can comprehend at that stage. Inside this episode, I break down cognitive development by age group and discuss what you can teach them based on their ability. 

Want to make sure you set your kid on the path to managing their money well? This is the episode you’ve been waiting for! I share educational activities you can try, when to establish chores, when to open a bank account, how to teach them when to spend and when to save, and even when to introduce investing.

If you’re wondering when to start teaching your child about money, the answer is now. In the absence of direct instruction from us parents, our children will form their own opinions and gather information on their own.  Enjoy conversing with your kiddo, ask them questions, and, most importantly, make money an openly discussed topic in your household.

If you’re hesitant and wondering how even to begin teaching your kids about money, take a step back and think about what you wish you were taught. By teaching our children about money today, we’re making a beneficial impact on their future. 

Even if you fear awkwardness, are afraid you’ll “do it wrong,” or are unsure where to start, it’s better to start talking about money management now, when the risk is with the value of a toy, rather than later when the value is in the amount of monthly rent.

 

Money is an essential part of life. So just as much as we harp on brushing teeth properly, we should also be sharing financial fundamentals and including pricing comparisons, risk evaluations, and budgeting in regular conversations.

Being a positive role model and sharing open discussions about how money works are the two most important things you can do for your children’s financial future. Even when you make financial mistakes or are embarrassed about choices with money, having an open conversation with kids about those mistakes and your feelings can have a positive effect on their perspective of how money works, can be handled, and as a tool toward building wealth.

 

An Outline of Your Child’s Brain Development:

Birth-2 Years Old: Sensorimotor Stage- Your baby learns about the world around them and develops an understanding through their senses. 

3-7 Years Old: Pre-Operational Stage - Your child’s short- and long-term memory, imagination, ideas, and understanding of symbolic representation are all growing throughout these early preschool to early elementary years.

7-11 Years Old - Understanding of how the world works and gaining a better grasp on cause and effect occur during this time in a child’s life.

Beyond 11 Years Old - During these years, the discussions might be more in-depth, and can provide opportunities for kids to undertake things independently.

 

In this episode, listen for:

• 3-year-old brain structure and neuronal connections throughout brain development
• Our children’s brain growth is encouraged by the positive behavior we exhibit and the interactions we have with them
• Debit card system you can create with your child which can teach them value, savings and how to handle cash

 

In this episode, you’ll also hear:

[00:04:55] It’s possible for toddlers as early as three to grasp basic money concepts. At age seven, children begin to establish their money mindset.

[00:07:14] A person’s ability to change and grow as a result of a single event is referred to as neuroplasticity.

[00:17:03] Delayed gratification and the 3 steps to teach your children and help them understand what it means 

 

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Kids Debit Card system: www.famzoo.com