Financial literacy is an essential aspect of your children's life, especially if you want them to develop basic money-management skills and principles. You should cultivate smart money-saving, spending, and managing habits in them as soon as they know money.

Studies reveal that kids begin to understand the concept of money at the age of three and start to develop money habits at the age of seven. So, it's crucial to give a child a financial head start by teaching them about money at an early age.

Resources for Teaching Your Kids about Money

While teaching a child about money may seem a daunting task, it is easy when you have all the teaching resources. In this article, we explore some of the resources that can help you teach your children how to earn, spend, save, and manage money. Let's get started.

Money, Preferably Coins

Money itself is an essential resource for teaching your kid about it. You need to introduce money to your kids as soon as they begin to develop cognitive and counting skills, usually at the age of three. You should use real money, such as coins.

According to Penny Pinchin' Mom, kids love coins more than the notes. They can easily play around with them, count them, and insert them in piggy banks. With the coins, you can easily teach them how to add them up to a particular value.

You can also use the coins to teach them how to earn money. An excellent example is by giving them a few coins when they complete some simple tasks. Please don't provide them with any money when they fail to complete the chores.

Goods Purchases like Toys or Books

When your kid begins to understand the cause-effect relationships, usually at the age of six, you can teach them how to spend the money they have earned responsibly. As you shop with them, they will begin to understand that money has a direct tie with sold items.

When you go shopping, show your child that stuff costs money. For instance, you can tell him or her, "This toy doll costs $10." Once you've said that, hand over the $10 to the child and let them pay for it by handing over the money to the cashier.

As you teach your child to spend, let them know that there are different types of spending and payment methods. Teach them the difference between needs and wants and goods and services. That will help them understand how and why people spend differently.

Piggy Banks and Clear Glass Jars

Once you have taught your children how to spend, it's also essential that you teach them how to save. If the items they wish to buy are more costly than what they have, encourage them to consistently save the money they earn until they accumulate the entire amount.

One of the best ways to teach your child to save is by buying them a piggy bank. Let them save every coin they earn from the simple chores you give them. However, the piggy bank doesn't give your child visual, necessitating the need for a better savings tool.

A better alternative to the piggy bank is a clear glass jar. Your kids will watch their savings grow as they earn and keep more money. You can keep updating them on the amount of money they save every day. Encourage them to save as much as they can.

Financial Education Apps

There are so many apps that can help your kids understand the concept of money, such as how to count, save, and spend the money they've earned. Here are some of the apps.

DragonBox Numbers: It's the best app to introduce the concept of counting money to a child. It has brightly colored numbers and characters that are more engaging

Savings Spree App: This is a game app that demonstrates all the necessary financial concepts to children. It shows kids how costs can add up and how to save

iAllowance App: Allows children to set aside some money for particular products they intend to purchase. As a parent, you need to have full control over the app

Bankaroo App: Exclusively designed for children, Bankaroo offers a virtual account that teaches them how to save and manage their finances

Financial Websites for Kids

Besides the resources mentioned, many websites exclusively offer financial education and tips for kids. Here are some of the sites and what they offer.

Kid's Finance: Dedicated to teaching kids about financial responsibility. It has several books and links that can help teach your child about money

Kids and Money: This website also has a lot of links and resources that can help your child understand money, such as allowance calculators and budgeting tools