If you filed your taxes early, do you have your refund spent already? Or if you waited until this week to put things in order would you like to keep better records so that next year is easier? Whatever your answer is we realize that financial education is an ongoing process. Each year we gain more experience and hopefully adapt our daily habits to make the most of managing and saving our money. If you asked yourself, “who taught you how to manage your money?” I’m sure there would be a variety of answers. But often it’s not an area that as parents we think as a major topic to focus on with our preschool children.
At an early age children can identify where you get your money….just go get more at the bank or the store that hands it to you! What they don’t understand is that you worked hard for your money and the transaction that takes place is giving you money you’ve earned. Here are some concepts that the “Thrive by 5 National Credit Union Association” has identified as concepts that children by the age of 5 should understand. All of these will mold into your family values and priorities, but really talk about money in your home and how you choose to use it.
• Spending is only one aspect of money, we can also save it and share it.
• When I buy something, I am trading my money for an item, product or service.
• When I save money, I can buy something in the future when I’ve saved enough money for it.
• We get money, when we go to work.
• We can also get money as a gift.
• We can keep money safe at home or at other places like a bank.
• Coins come in different sizes and colors, paper money has pictures and numbers and both paper and coin have different values.
• Different things have different values.
• We all pay for things in different ways.
• There is a difference in wants and needs. We base most decisions on what we want or need.
• We have a limited amount of money to spend.
• Once we spend it, it is gone until we earn more.
• If we plan how to spend or save our money, we can make better choices
• Money isn’t everything, some things are free.
• People do some things for each other without being paid.
As you read through this list, think about the daily conversations you can have with children in your life to help them understand that money doesn’t grow on trees and planning how to use it will help us manage it instead of it managing us.
Author: Melinda Hill, CFCS, CFLE Extension Educator, OSU Extension Wayne County
Sources: Credit Union National Association, Thrive by 5 for more information: www.creditunion.coop
Reviewed by: Kara Newby, Family Life Program Specialist, OSU Extension
