How To Teach Financial Literacy For Kids Age 4 to 7 Years

Financial literacy for kids is essential. Although four may appear to be a young age to begin teaching children about money, there are a few kid-friendly financial themes that can get them started on the right foot.

Introduce Financial Literacy for Kids by Setting a positive example

First and foremost, children are like tiny sponges. They absorb whatever you put out, so if you lead by example and don’t add unneeded worry to your financial approach, they’ll begin to believe that personal money isn’t so scary after all.

Setting a good example will look different depending on your personal financial status, but it’s important to avoid tense conversations about money, emotional spending, and digging oneself into debt, to name a few things.

Maintain a healthy financial routine

You may use financial literacy books and introduce healthy financial habits yourself are ways of providing a good example.

Here are a few instances of financially successful people’s strong money habits:

  • Pay with Cash, not A Debt
  • Pay off current debt with a debt snowball or debt avalanche strategy.
  • Find the most affordable option.
  • Avoid the temptation to “keep up” with other people’s lifestyles by splurging.
  • Pack a lunch or find a cheap favorite dish.
  • Consider stocks, bonds, ETFs, and private companies as potential investments.
  • Attempt to generate several sources of revenue (employment, real estate, investments, etc.)
  • Always have emergency money on hand.
Financial Literacy For Kids

Save Money Regularly

Saving is a straightforward idea for young children to comprehend, especially if it has a visual component.

Purchase a clear piggy bank and demonstrate the importance of filling it with coins. Then, using those coins, assist them in purchasing whatever they wish, such as a new car.

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Tell Their Toys Price

We’ve all heard Target’s aisles reverberate with children’s desperate attempts to acquire new toys. However, this is a teachable moment for parents.

Tell them how much each item costs so they can acquire a sense of how much they’re spending early on.

Then, using the funds from the piggy bank, make the purchase so they can see their savings decrease.

This may assist children in realizing that there isn’t a money tree in the department store parking lot and that products cost money.

You may teach with a different method when you have kids above 7 years old. Introducing how to save money and how to manage money since being a kid is very important and you can start to do some ways above to teach financial literacy for kids.

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