Why should kids learn about money in kindergarten?
There is a rule that goes like this: Kids should start learning about money when they are old enough to understand that it shouldn’t go into their mouths. The discussion must be age-appropriate, of course, and you should not insist on theory or complicated lessons, but you will keep everything fun, easy to understand, and, above all, practical.
You must be careful though! At this age, every kid is like a sponge that absorbs and imitates your every action. This is why YOU should be a positive example.
Several studies have shown that parents are the main influence on children’s financial behavior. Studies have also shown that the behaviors that kids develop until the age of 7, will last their whole lives.
What should kids learn about money in kindergarten?
As I said: At this age, you do not want to fill the little ones’ heads with too much information, but you want to keep the lessons as practical and simple as possible. That’s why it’s enough if you will teach children:
Keep reading if you want to know how to approach each of these lessons so the kids can understand them and put them into good practice throughout their adult lives.
What is money?
Because you want to keep the explanations simple, it is enough if throughout kindergarten kids learn that:
Money is a medium of exchange used to pay for goods, services and also to measure value.
As an exercise, help your kids get familiar with the currency in your country. Explain the differences between coins and bills and associate them with products they know, such as pieces of candy or chocolate bars.
Another practical exercise you can do together is called “Homemade Money” and this is when kids let their imagination go wild and they start creating their own types of bills and coins.
What do we use the money for?
After you have explained to the kids what money is, inevitably you will also be asked:
What do we use the money for?
Money is exchanged for goods and services, and to measure value.
All you need to do to help them understand what money is used for is to engage them in the family’s financial decisions. Take them shopping and always ask for their opinion when you have to choose a product.
Also, to better understand the exchange between money and objects or services, talk to your kids about bartering – how people, in ancient times, used to trade different objects to get whatever they needed.
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How do we earn money?
If each good or service has its value in money, then we can tell the little ones that:
You can earn money by exchanging goods or services for it.
And to better understand this, tell them about your job. It’s good to refer to an example that they know.
Here’s another exercise you can try: offer the kids their own recurring income. Be very careful, though, to make them understand why they get that money and not just take it for granted.
The Lemonade Stand is another great way to practice these lessons. In Investory, the financial education video game, kids can experience the lemonade stand from the comfort of the living room couch.
Spend, Save, Give – Three things to do with money in kindergarten(3-6 years old)
You, as an adult, know what you can do with the money – you know that you can spend it, you can put it aside, you can invest it, every investment can bring gains, interest, and so on. Obviously, for a 3-year-old, these financial mechanisms are quite complex.
This is why for preschoolers we have to tone down the information. At this age, it is enough for them to know that with the money they get, they can:
Try to observe the natural behavior of the kids, what they tend to do when left alone with the money. If you notice that they tend to spend too much or to give away too much, you will know what to focus on in future lessons.
If you want the kids to understand these lessons, try to do an activity together, where once a month you gather and decide what to throw away, what to keep, and what to donate, be it clothes or old toys.
Conclusions
After reading this article, you need to keep the following in mind:
If you want the little ones to implement these financial lessons, but also others, practically and interactively, download Investory for free – a financial education mobile video game that kids love!
