Parenting

Teaching Children About Money

Teaching our preschooler about money can be very easy and fun. At a tender age of three, a relaxed approach is usually the most successful. We use money practically everyday; therefore there are plenty of opportunities for us to teach them about money.

My first attempt to get Little Edison familiar with money was in February this year, right after the Chinese New Year. He tore open his ang pows and I explained to him where the money comes from, what the money is for and how he should use the money. He probably didn’t understand what I was talking about but I just wanted to give him an early concept about money.

Recently, I’ve been teaching him what a dollar looks like and how to recognize the different coins. Now, he can recognize 50, 10, 5 and 2 dollar notes. Coins are a little more tricky. After a few practices, he can recognize one dollar coin, 50, 20, 10 and 5 cents by looking at the numbers and sizes.

Little Edison is also very curious about credit cards and ATMs. Every time I withdraw money from the ATM or pay for purchases via credit card, he will quietly observe what I’m doing. I explain to him that ATM is not a free money machine – Mommy and Daddy work hard to earn money for our savings and future. He nods his head and looks like he understands.

Teaching our preschooler about money isn’t difficult at all. Take the time to begin explaining money to them and I believe this will guide us to the path on raising children who will make wise financial decisions in the future.

If you’ve any creative ideas on teaching children about money, please share with me. I love to hear them.

 

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2 Comments

  • Reply
    Rachel
    November 25, 2010 at 11:17 AM

    hi. i let her play monopoly in smaller denominations – instead of buying hotels/houses at $100/$200, we used $10/$20.
    she doesnt quite understand what is what exactly but she knows that money is limited, she can’t buy everything she wants and there are fees like doctor, repairs etc to be paid.
    can teach her simple additions and counting too.

    • Reply
      Emily
      November 26, 2010 at 4:49 PM

      Hi Rachel,
      Monopoly! Great idea! They can also learn counting and additions too. 🙂 Thanks for sharing your idea.

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