Learning the ABCs of finance is just as important as learning how to cross the road, talk to people, prepare basic meals. It’s something essential we all should learn from a young age - after all, the world we live in wouldn’t go far without the monetary system we have right now. So why not learn about it from a young age? Especially if it’s done in a fun and entertaining manner. 

If you have kids, younger siblings, or just generally want to teach kids about finance, this section is for you. But how exactly do you teach these things to kids? Here are some useful life hacks that will make the learning process easier for both of you. 

1. Keep it simple.

Kids don’t need unnecessary details and long explanations. What you need to explain is the essentials behind how finance works. Even adults tend to fall asleep when presented with too much information. Imagine what happens to the kid who gets too much information on their plate. Best case scenario - they just get bored and tune out your explanations. Worst case scenario - they actively resist you trying to teach them something in the future. So let’s keep things very basic. Think of it as a steady foundation you build for their future development - you can always add more details later.

Great themes to start with include:

  • History of events or items. How did humanity invent it? Why did they do it? Your tiny student will appreciate extra information about what it was like for people before - after all, history is fascinating. 

  • Everyday things that surround you. Got some loose change somewhere in your house? Take a look at those coins together, find the little details, see what they are made of. See a vending machine while walking with your kid? Let them handle the money, observe the exchange process, and see how a few coins or bills can turn into a bar of chocolate. 

2. Don’t be afraid not to know things

When you learn something along with your kid, it doesn’t matter if you are an expert on this exact subject. Show your kid that there is nothing wrong with not knowing things as long as you want to learn more about them. “I don’t know, buddy, let’s look for the answer together!” is something that will not only let your kid observe how you look for information but also be a great bonding time.

Teaching how to look for things is just as important as simply teaching things. Be very particular about your sources and the whole process - that too will be a great basis for your kids further education and learning process. 

3. Gamification is the key

Learning can be so much fun when you don’t stick to just books and boring explanations. Turning your lessons into games will make the kid anticipate to learn more, motivate them to know more and reach more ambitious goals.

Don’t know how to turn your explanation into a simple game? That’s just one way how you can do it: 

  • Ask your kid to listen closely and tell them a story containing the information you want them to learn.

  • Introduce a simple point system. Draw 3 hearts on a piece of paper - that would be the “lives” the kid can use to make mistakes. 

  • Make a list of 5 questions based on the story you have told. Make sure they are not too easy nor too difficult - plan accordingly to your kid’s level. You can make one question a bit harder to answer - that would be a special task to check their attention and ability to analyse information. Again, no Harvard-level questions! 

  • Plan a reward for completing all the tasks correctly. Remember, you can’t reward kids with everyday things like food, walks, free time - that’s something kids should have by default. Make the reward extra special - it doesn’t even have to be something you spend your money on. Make a movie night with the whole family and let the kid pick all the movies. Take them to a museum to see their favourite dinosaur. Quality time beyond the time you already spend with them is something very special and dear to children. 

Bonus point for making more family members participate in the game! The more, the merrier. 

4. Be consistent with your lessons, but don’t let them take too much time.

Set a certain day for learning new things with your kid. Once a week would be enough for starters, and if your child is really interested in those lessons, they sure will ask you for more! 

Make sure the kid isn’t hungry or sleepy, and then proceed with your prepared activities. But remember that it’s okay to stop the lesson if something is wrong. Learning with you should be fun, not something done out of necessity. 

5. Make sure your kid knows why you teach them that. 

Learning things for fun is great, but having an additional purpose for that is even better. Be honest with your kid when it comes to how important money and all things financial are (but don’t overcomplicate it). 

6. No “you will get it once you are older”.

Families tend to dismiss children’s questions about money. How much do you make? How much does something cost? Kids stay in the dark when it comes to those topics only to grow up confused about money. There is no need to tell your kids about your financial decisions or struggles, but don’t be afraid to answer their basic questions. One day, they will become adults and deal with those things, too.

Introducing your child to the world of finance might seem tough, but it’s a great opportunity to make sure they grow up even more informed than our generation and avoid some struggles we couldn’t avoid.

Here’s to knowledge and a better future for those we care about!