School’s out for summer...but that doesn’t mean the learning has to stop! Read on for a few fun and creative ways to teach kids about financial management during the warm weather months.
The lemonade stand is a summertime classic for a reason! Starting a lemonade stand is a great way for kids to learn about money, meet people in the neighborhood, and have some fun. Work together with your kids to design a business plan and create a budget. While shopping for the necessary groceries and craft materials, be sure to help your kids refer back to their original budget. When it’s time to set up shop, you might “advertise” by hanging signs nearby, posting to neighborhood groups online or texting friends in the area. After a day at the stand is done, count up your earnings—remembering to pay back the original investment!
Many kids don’t want more school in the summer, so instead of “teaching” kids about finance, aim to make them a part of the discussion. Hold an all-hands monthly budget meeting with every single person in your household and talk about finances in an age-appropriate way. It’s okay to let kids know that energy costs are more expensive in the summer, or to celebrate when the vacation fund is full. Kids can also share their opinion, especially when it comes to day-to-day budgeting decisions like whether to spend extra funds on a family movie night or a nice dinner out.
Hit your local library and see what money-learning materials are available to check out. Younger readers might enjoy “If You Made A Million” by David M Schwartz or “Get to Know: Money” by Kalpana Fitzpatrick, while “I Want More Pizza” by Steve Burkholder is a popular choice for teens. As always, ask your local librarian if they have any recommendations! Once the books get home, read them as a family and use it as an opportunity to ask your kids questions on the material—not to test them, but simply to open up a discussion and see what they’re thinking about when it comes to money or if they have any questions.
Fifty years ago, kids stashed away their allowance funds in a piggy bank. Today, many families go for the “Give, Save, Spend” method instead. The idea is that kids distribute their allowance, birthday money and other cash into three separate funds: money to give to charity, money to save for a bigger purchase in the future, and money to spend in the short-term. With this method, kids can learn the basics of saving vs. spending, plus have the opportunity to do good for others. Plus, decorating “Give, Save, Spend” jars can be a fun craft activity for families to do together, possibly while chatting about money and financial management.
Learning about money is more fun when it’s, well, fun! Nowadays there are tons of games which can teach kids the must-knows about finance. Monopoly is a classic game for families, and also a good opportunity to show kids the cost-benefit analysis of saving up for the future, versus spending money now. Both Ticket to Ride and Settlers of Catan ask players to practice saving and making resource-allocation decisions, which can lead to a larger discussion about financial management. And, beyond board games, there are not a ton of online games specially made to help kids (and adults!) understand more about budgeting, borrowing and lending money, investment and lots more.