After the summer months of travel, vacations and fun in the warm weather, the fall is the time when we get back-to-school and back-to-business. But what about back-to-financial basics?
Financial literacy is one of the greatest gifts you can give to yourself and your family. Why not use this time of year to come together and teach them about money?
If your children can distinguish between a $1 bill and a $20 bill, you can start teaching them about money!
>>Click here for Activities to Teach Kids Financial Literacy<<
School Supplies and Spending: Teaching Smart Shopping in Real Time
Going back to school is the perfect time to consciously create teachable money moments for your children. Instead of paying for everything yourself, why not get your children to make their own spending plan? Even young kids can learn the value in becoming smart spenders and comparing prices to get a good deal.
For children who are a little older, consider helping them to understand the bigger picture by explaining about income and how it must be disbursed to pay for the things your family needs.
Then, after reviewing their back-to-school supply list and other necessary items, talk about the amount of money they will be given for the purchases and have them make their specific spending plan.
Encourage them to compare pricing before purchasing anything by:
- Reviewing flyers
- Exploring online pricing
- Visiting various stores
Have them consider and investigate things like:
- Student discounts
- Buying used textbooks if possible
- Checking thrift stores for gently used clothing
- Investigating coupons or other discount vouchers
Once they have a plan, give them the exact amount of money they can spend to get the items on their list and let them make their purchases.
This kind of financial literacy lesson doesn’t have to be limited to the school year. Birthdays, seasonal holidays, summer vacations and earning allowances are all excellent money mentoring moments you can explore together.
“Financial education has always been important to me, but it became my true passion and my life mission after my son Phillip ran into financial trouble in college. It is not just important – it is our responsibility as adults – to prepare our children with the financial education and skills they will need to not only survive but to thrive in the financial world they face.” – Sharon Lechter
How to Model a Growth Money Mindset at Home
Back-to-school is just one of the things we have to financially plan for each year. As adults, we know how quickly our plans can change, causing a family budget reset. To further develop your kid’s financial literacy, it’s important to talk about money regularly and discuss those changes with them. By doing so, it gives you the opportunity to teach them how we can adjust and/or pivot in the new situation.
Sometimes that means making a new plan, but it can also mean getting creative to figure out how you can make something happen instead of just saying that we can’t do this.
Kids are imaginative and innovative. You might be surprised at the things they come up with when they are motivated to make something happen. This kind of exploration will also grow their money mindset, help them develop positive money habits, and teach them about setting money goals.
To get the brainstorming rolling, you could suggest:
- Having a garage sale
- Selling used items online
- Making crafts and selling them
- Doing yard work or pet care for neighbors
Then let them take over!
This can be a really fun exercise that helps them expand their thinking about money, and instead of saying “I can’t” they get to learn about the power of saying, “How can I?”
Lessons in Saving and Investing
Helping your kids develop a spending plan shouldn’t stop at purchases. It’s also important to teach them about saving and investing in their future. [Click here for tips on Raising Smart Savers!]
If you’re worried about trying to explain this kind of financial literacy, remember that there are many apps and platforms available to teach children how to save and automate investing, making it so much easier! As a family, you can choose the one(s) that are most suitable to the child’s age and level of financial literacy. Then it’s simply a matter of dedicating time to spend together to learn how to set and reach the money goals.
Daily conversations will develop positive money habits for your children throughout their lifetime, so start fresh this fall and keep the ball rolling throughout the year. The more fun you can make it, the easier it is for them to learn and stay engaged.
That’s why I created ThriveTime for Teens. (Children in grade 5 and up can play!)
In the game, you and your kids will be faced with money and life decisions like buying cars, managing expenses, giving back to your community, paying for college, using credit cards, buying stocks and starting businesses. The winner is the one who, not only generates income and makes positive financial decisions, but also effectively manages their time and does good for those around them.
It’s a great way to bond as you boost your kid’s financial literacy, develop a growth money mindset, help them see how they can make money and how they can make a positive contribution in the community too!
CLICK HERE TO GET THRIVETIME FOR TEENS TODAY!
What teens are saying about Sharon Lechter’s ThriveTime for Teens!
“They sure don’t teach this stuff in school!” – Brittany, 12
“I want to keep playing!” – Charlie, 13
“I learned how to use my time and money wisely.” – Sammie, 15