As life becomes increasingly cashless, it’s important for our kids to understand the concept of money in its different forms.
By giving our kids a strong understanding of money, we can build healthy habits around budgeting, spending and saving money that can set them up for life.
Here are a few simple ways you can approach this with your kids:
At the ATM
It’s important to teach our kids that money doesn’t grow on trees or magically appear from a machine in the wall! Next time you withdraw cash, take the opportunity to explain to your kids that ATMs hold money that you’ve worked hard and saved for.
At the supermarket
The supermarket presents a great chance to show your kids how to shop around for the best price. Get your kids to compare prices for you and pick the cheapest one. Not only is this a great way to learn about budgeting and money, but it will also help translate the maths skills they learn at school into real-life situations.
When giving pocket money
Pocket money is a great way to help your kids understand the value of money. When your kids can clearly see the connection between completing chores and earning money, they’ll begin to understand what’s involved in saving up for something they want. Here are a few ways you can encourage kids to make the most of their pocket money:
- The 50%, 40%, and 10% rule: teach your kids to save 50%, spend 40% and donate 10%
- 3 money jars: set up 3 jars for saving, spending and donating. This method will allow your kids to see the money being put into each category and will help them understand the difference between saving and spending money
- Budget: help your kids draw up a budget of how they’ll split up their pocket money, or how long it will take to reach their savings goal. You can use the calculators available on our website to help!
Did you know that MOVE Bank offers everyday banking and savings accounts to kids aged 12 and over? Contact us on 1300 362 216 to get started these school holidays.