Manage Your Money Like a Kid

by Kristina Tahnyak on November 28, 2012 · 3 comments

I was recently watching television when I saw a commercial for a toy called The Leap Pad.  It is a toy for toddlers that teaches kids how to add, subtract and manage their money.

Of course The Leap Pad is not a toy with sophisticated accounting software because kids don’t have sophisticated money needs, but The Leap Pad is a great gift for any child to learn about the value of money and how to add and subtract.  I don’t have kids to buy this gift for but my four-year-old niece should be expecting The Leap Pad for Christmas.

Teach Your Kids About Money at a Young Age

It is very important for kids to learn about earning money, managing money and the value of money at a young age because it sets the basis for their financial well being in the future. Think about your money when you were a child.  Did you have to work around your house for a weekly allowance or was money always given to you when you wanted it? Did you only get gifts on special occasions such as Christmas and your birthday or were you constantly showered with the latest new toys?

My four year old niece is currently learning about money.  She has a wallet and her parents ask that we give her gift cards or cash for Christmas so that she can learn about budgeting and saving money.  As I watched my four year old niece talk about the amount of money on her gift cards and as she showed me pictures of the items that she was saving up to buy I started thinking…wow adults can learn a lot of money from kids.

3 Money Tips You Can Learn from Kids:

1. Save Your Money in a Piggy Bank.  A piggy bank is the kid-friendly version of a high interest savings account.  It is used for savings for short term goals.  If you need your money within a year then a short term savings account may be the best option for you.

2. Spend Your Money on Ice Cream. Sometimes adults get so caught up in the idea of saving money and increasing the value of our net worth that sometimes we forget to spend our money.  What’s the point in saving money if we can’t enjoy it? I definitely believe in saving for our future, but not if it means that we can’t enjoy our money at the same time.

3. Be Proud of Your Accomplishments.  Have you ever asked a child how old they are? Kids are more than happy to tell everyone that they are 4.5 years old or that they are now in grade two.  The same pride applies to their personal savings.  My four year old niece was more than happy to open up her wallet and show me all of the gift cards and cash that she has earned for being good at school, cleaning her bedroom and feeding the family dog.  Adults should also be proud of their personal and financial accomplishments because after all we did work very hard to achieve them.

Photo by EEPaul

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{ 2 comments… read them below or add one }

1 DC @ Young Adult Money November 28, 2012 at 9:26 am

Hey isn’t the name of this blog “Dual Income NO KIDS”??? Just kidding :P These are great tips though. It’s so important to teach kids about money and what sort of attitude to have towards it. Growing up there was always enough money, but it seemed to cause a lot of stress for my Dad. I think this is one reason I am extremely motivated to make sure that I have enough of it, which is a good and bad thing.

2 Wanda Thibodeaux December 21, 2012 at 7:47 am

I agree that parents and kids both need to be money smart. I like using to get my kids going.

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