10 Tips for Teaching a Preschooler about Money

Teaching kids about money when they're young will have a huge effect on their money management later in life. Start them off on the right foot with these 10 Tips for Teaching a Preschooler about Money

Tips for Teaching a Preschooler about Money

Did you know children learn more between the ages of 2 and 5 than any other years in their life? As a preschooler’s brain develops, they are taking in the world around them and learning things they will use for the rest of their lives. With this being said, teaching your preschooler about money is one of the best things you can do as a parent. These 10 tips will help you teach the life skill of money easily:

10 Tips for Teaching a Preschooler about Money

1. Show them Money: One of the easiest ways to teach your preschooler about money is to show them what money looks like. Let your preschooler hold a dollar bill or a few coins from your wallet.

2. Ask them to Count: Give your preschooler some money to keep. Use this opportunity to tell them the value of the money they have. Tell them the cool things they can buy with what they have.

3. Let them Pay: Take your preschooler to the store with you, and give them a small amount of money that they can use to pay for items they want or household items you need. This allows your child to visually learn the value of money. This also, teaches them to count.

4. Play Store: Another great way to teach your preschooler about money is to set up a pretend store. This teaches the concept of economics. Your child will learn to count change, pay the right price, and will learn what he or she can or can’t afford.

5. Teach Savings: Preschoolers may not grasp the concept of saving money, yet, but they will if you help them. A great way to do this is with a simple piggy bank. Offer your child money for chores or encourage them to save money from the tooth fairy.

6. Pick out a Toy: Go to the store with your child just to pick out a toy he or she wants. Show your preschooler the price. Teach your preschooler that you have to have money for the things that you buy and this item costs X amount of money. This gives you an opportunity to encourage them to save their money so they can come and buy the toy themselves.

7. Make Predictions: Take a small jar filled with change and ask your preschooler to guess how much money is in there. After you both guess, count the change together. This will help them learn the value of money and how to count.

8. Convert Money: Preschoolers need to see things in order to understand it. So, instead of just counting change in your child’s piggy bank and giving them the cash, show them that they have 4 quarters which is $1. Show them that 100 pennies is $1. Practice counting out and converting change to dollar bills.

9. Pay for Services: Preschoolers love getting money to put in their piggy bank. A great way to teach them work ethic and how to be a contributing member of society is to teach them that when they work, they get paid. Pay them an allowance for picking up toys, throwing away trash, or even behaving.

10. Matching Game: Use real money or play money to match dollars to dollars and quarters to quarters. Talk about the shapes and size of the money and how just because it’s bigger doesn’t mean it’s worth more. Match up money that is worth the same amount.

Preschoolers are little sponges and are capable of learning most anything your throw their way. Be creative and make it a game.

What other fun tips do you have?

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