6 Steps to Teach Your Young Children Money Skills
Use this framework to show your child how to set a goal and make a plan to reach it. Children do best with goals that can be reached in a short time and are concrete. Find a picture of something your child wants and hang it on the wall. Have them look for the best price, and then determine how much they will have to save each week to reach their goal. Mark off on a calendar daily as they move closer to their goal.
Step 1: Set a goal. Is there something you need, like a calculator for school supplies? Or something you want, like a bicycle? Write down your child’s goal.
Step 2: What will it cost? Shop online and look at different stores to find the best price for the item you listed above.
Step 3: Make a spending plan
1. How much money do you earn or get as an allowance every week (child’s income?)
2. How much money do you spend every week (child’s expenses?)
3. How much money is left over (subtract expenses from income?)
4. What is the child’s weekly savings goal?
Step 4: How long will it take? Divide the cost of the item by the your weekly savings goal. Write down how many weeks it will take to reach the goal:
Step 5: Save faster. Think of ways you can cut back on your spending so you can save more money each week. Also think of ways you can earn extra money so you can save more. Write down your ideas.
Step 6: Celebrate. You have reached your goal!