Teaching your kids the importance of saving early on will lead to a healthier, happier, less stressful life for them — and for you. The trouble is, finance isn't always the most exciting topic, and most kids aren't interested in sitting down for a lesson in economics. Read on for fun ways to introduce financial concepts to your children, as well as how you can integrate financial responsibility into their everyday lives.
Although many schools attempt to teach basic financial literacy to students, the responsibility falls to the parents to apply those lessons to real life. Learning how to count change in the classroom is very different from getting a real allowance, opening a savings account, and creating a budget to help your kids buy the things they want.
Pretend to spend. When your kids are in elementary school, set up a fake store or restaurant at home. Give them a certain amount of fake money and create scenarios, like buy five items with your money or buy three meals for less than $20. By learning how transactions work in a safe environment, they'll understand them better in the real world.
Whether you're using coupons at the grocery store or depositing checks on your phone, let your kids see what you're doing. Answer their questions and explain the reasons behind your decisions. Show them that they can ask any financial questions they want, and don't be afraid to admit your mistakes — it might just help them avoid making the same one day.