By Leila Ugincius

Is it ever too early to teach your kids about money? Not really, says Stephen Day, Ph.D., director of the Virginia Commonwealth University Center for Economic Education.

Day is author of the forthcoming book “Teach a Kid to Save” and a blogger on Substack at “Paper Robots: Helping Families Talk About Money and Work.” He said elementary age is the right time to start teaching kids about money habits and values, as that is when they learn what “our family does” in response to life’s challenges.

With consistent practice, kids become comfortable with what they should do with money when they get it. Practice doesn’t have to be difficult – it can even be fun – but it should be based in a family setting.

“Learning about money isn’t just head knowledge. It’s about getting started with habits that will last a lifetime,” Day said.

Here are some activities he suggests for parents. “Note that all of these ideas have been successfully used to teach kids about money,” he said. “This is real-life, testing teaching, not just spit-balling!”

1. Think of everything you need for the upkeep of your pet. A dog might need a collar, doghouse, training, food, pet-sitting, flea treatment and so forth. Get 20 pennies that represent an amount of money spent on pet amenities, and have the kids “budget” how much to allocate to each category. For example, four pennies for food would be high-quality food. (Ages 4 and up, for teaching about budgeting.)
2. At the grocery store, have the kids search for big items that have a small price – and for small items that have a large price. (4 and up, about prices, value and why we buy the things we do.)
3. At the grocery store, ask the kids to help find specific things on your shopping list. This will help focus their minds on what you should buy that’s on your list, and not on extra things that no one needs. (4 and up, about budgeting, prioritizing, scarcity and goal-setting.)
4. At the grocery store, ask the kids one of the questions below each time you go. (6 and up.)
   • Where is each product from? Explain that no one makes everything they need themselves. We each do a special job that we’re good at, and then trade for the things we need by buying them at the store. That’s why there are products from all over the world at the store: We all do what we do best and then trade for the rest. (World trade)
   • Find a heavy product and a light product that cost about the same. Why may the light product be so expensive and the heavy one so cheap? (See an example of Day’s own kids doing this here). (Ratios, units of measurement, price and value)
   • Should we use the price or the unit price for the items we buy? (Ratios, units of measurement, price, value and budgeting)
   • Which tends to cost more: products with lots of ingredients or just a few? (Science, prices, cost of nutrition)
   • Which costs more: healthy food or cheap food? Why do you think this is?  (Science, prices, cost of nutrition)
   • Which section in the store has the most expensive items? (Marketing, psychology and value)
5. Have kids put activities for the week in order of importance. Tell them that we are “prioritizing” and that we should do our highest priorities first. (6 and up, about scarcity, goals, prioritizing and planning)

   

6. Play the money-related games that you see in the TV show “Bluey.” For example, you can make all the shops you see in the episodes “Markets” (such as a carrot juice stand or a German sausage stand) or “Calypso” (a fish-and chips shop or toy-babysitting service), or they can open a high-end eatery like in “Fancy Restaurant.” Give the kids play money in these games so they get used to negotiating prices and therefore understanding market value. (6 and up, about markets, prices, buyers and sellers, trade, interdependence and value)
7. Hold a “Market Day.” Guide the kids in making a business at home, such as selling art, coffee, smoothies, jokes, compliments or doing a service like feeding the pet that week or organizing the books. Pay each family member in play money for the chores they complete. Then have each member buy and sell to each other at the family market. Include friends to make a larger market. (6 and up, about markets, prices, buyers and sellers, trade, interdependence and value)
8. At home, give chores with job names. Pay the kids in play money and have a household store each week. The parents should get paid in play money for their jobs, too. The whole family should get paid together and share in the ritual of budgeting: Put money first in the “Share Jar,” then the “Save Jar” before they spend money at the store. At the store they can buy small treats but also coupons for privileges, such as a treat from the pool concession stand or staying up late. Since the parents are also paid in play money, you can all talk together about your saving and spending choices. This is called is called a “mini-economy,” and it helps parents talk with their kids about money in a low-pressure environment. (5 and up, about budgeting, sharing, saving, spending and "What our family does when we get money.”)
9. Have the kids do “money rubbing.” Use crayons to rub impressions of different coins through a piece of paper. Have them use these rubbings to make larger art projects. (4 and up, about identifying coins.)
10. Ask the kids what they think the symbols and artwork on different bills and coins mean. (4 and up, about identifying currency.)