Friday, January 27, 2023

How to Teach Kids to Be Financially Savvy

As a mom of two boys, one turning three and the other turning eighteen, I am constantly thinking about how I can teach them valuable life skills. Financial literacy is one of the most important skills I want to instill in my children.

Teaching kids about money can be tricky, but incorporating online video games can make it much more fun and engaging. For example, my older son and I enjoy playing games that simulate managing a virtual budget or investing in the stock market. It’s a great way for him to learn about money hands-on and understand the importance of budgeting and saving.

I also look for one that has a variety of interactive games that can help teach kids about different financial concepts such as compound interest, credit scores, and even mortgages. One of the games my eldest and I enjoy the most is Play LEGO City Adventure Build and Protect because we like building things. 

The first time we played this, I remember our donut shop ending up on fire. The second time, we encountered thieves. It was a good way to show my kid that these are the same things that could happen in real life and that these kinds of emergencies are what emergency funds are for. 

Aside from using online games, I have regular conversations with my eldest about money. I talk to him about saving, budgeting, and setting financial goals. I also encourage him to start earning his own money through allowances or small jobs so he can learn how to manage it independently. For my youngest, I've opened a savings account where I put a thousand a month in savings for him. 

I also set a good example by practicing good financial habits, like sticking to a budget and saving for the future. And lastly, I explain the value of money and how hard it is earned so they understand the importance of being responsible.

Teaching kids about money can be daunting, but with a little creativity and patience, it can be a fun and rewarding experience for you and your children. 

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