How to Teach Kids Financial Literacy with Everyday Tasks

As parents, we are always trying to make sure that our children are well-equipped to handle life’s challenges. One of these challenges is definitely finance. A solid understanding of finances will serve children well throughout their lives. However, it’s difficult to know where to begin when teaching your kids financial literacy. Luckily, everyday tasks can serve as excellent opportunities for lessons in finance for children. In this blog post, we'll be sharing how everyday tasks can serve as opportunities to expand your child's financial literacy and expertise for assistance in financial decision-making in their future.

Grocery Shopping

Grocery shopping can be an excellent opportunity to teach your children about budgeting and planning. Before heading to the store, create a list of essentials and let your children help decide what makes the cut. Encourage them to think about the cost of each item, choose between name brands and generic brands, and identify deals and discounts. This is also a great opportunity to think about needs vs. wants. Can you run through your list and note the items that are needs (medicine, toiletries) and items that are wants (ice cream, treats). Once in the store, allow them to choose some items as well, keeping in mind the budget and priorities discussed upfront.

Household Chores

Paying an allowance for household chores can be an excellent way to teach kids the value of work and earning money. You can create a chart that lists different tasks and their corresponding pay. This way, your children will learn that their time and effort have value, and they will appreciate the significance of earning and saving money. Next, you can help them make plans (and budgets!) for what they earn.

Planning a Budget for a Fun Activity

Encourage your kids to participate in planning and budgeting for a fun family activity. Let them help choose the activity and decide how much money to spend on it. Assist your children in researching activity options and comparing prices to make an informed decision. Once the budget is set, encourage them to stick to it; this will give them a sense of self-discipline and teach them that fun can be enjoyed on a budget.

Creating a Savings Account

Encourage your kids to save for items they want to purchase by opening a savings account with them or setting aside money in a piggy bank or jar. Encourage regular saving by having them set a goal for the item they wish to purchase and setting a timeline to achieve it. Watching their balance grow will give them a sense of pride, and achieving their target will help them understand the discipline and benefits of saving money.

Let Them Observe

Additional practical examples of everyday spending include letting them observe and participate in family bill paying and involving them in budgeting for larger expenses like family vacations. Letting your children observe how bills and expenses are paid, as well as what goes into budgeting, can give them an understanding of the financial implications that come with adult life, and connect their own smaller-scale experiences to larger ones for the whole family. It can help them understand the impact of their choices, the importance of budgeting, saving, and making smart financial decisions.

In conclusion, teaching your kids financial literacy can be made easy and fun with everyday tasks and activities. Grocery shopping, household chores, planning family activities, creating a savings account, and observing family finances can be excellent opportunities to teach your children about budgeting, saving, and making smart decisions with money. By teaching your children financial literacy now, you are setting them up for success in the future.

For more financial literacy resources for all ages, visit FitMoney and the programs available for K-12. For K-6, check out the $uperSquad - FitMoney's choose-your-journey learning platform with videos, modules, and games to practice healthy financial decision-making skills. For 7-12, the Financially Fit Certificate platform helps students develop skills from budgeting to saving and understand concepts like loans and interest. At the end, they'll receive a certification to use on future applications.