Money, it seems, is getting more difficult to explain. With credit cards, debit cards and monthly statements, it is harder to share the concepts of money in, money out with our children.
High schools have been working to help with financial literacy, but the idea of having money before spending money needs to be planted in brains prior to the teen years.
Maybe even your own preschooler has reminded you to just get out your credit card to pay for something. As we move into fall routines and more time indoors, this is a good time to give your preschooler a few new activities. The ideas we want to get across to preschoolers are basic.
What is money? Begin by letting your four year old sort coins. Preschoolers like shapes. Get out a handful of coins and some flat dishes and ask your preschooler to sort the coins. Add to the fun when they are finished sorting by giving them only pennies and a pair of dice. Ask your child to roll the dice and count out the number of pennies to match the number rolled with the dice. Ask them to stack the pennies into a tower of pennies. How many times can they add pennies to the tower before the tower falls over?
The next concept that we can help a preschooler understand is, ‘once the money is gone, it is gone.’ (You might have grown relatives who still struggle with this one.) At our home, we transferred coins to a jar. When it came time for vacation, the jar was emptied, counted and shared among all members of the family, children and adults alike. We allowed the children to spend the money as they pleased on vacation, but reminded them that when it was gone, it was gone.
Imagine our surprise when we got the question, “is it ok if I don’t spend it, but bring the money home?”
You might instead give a child a dollar to make a choice in the dollar store. Let them pick out an item and pay for it. They might register surprise when the dollar is taken by the cashier and not returned. If the child changes their mind about the purchase once you’ve left the store, you have yet another teachable moment. This is a great time to help them understand they will get better at choosing with practice.
A final concept that is important to share with preschoolers is about saving. Four or five year olds can understand the idea of putting money away. Help them with a special piggy bank and a bank account of their own. Bring them with you to the bank to put their money in and talk with them about how this works.
Keep it fun and look for opportunities to teach skills. Don’t lecture and allow the child some time if they aren’t happy with their purchases. Wouldn’t you rather have them make money mistakes with five dollar items than to have their first mistakes with vehicles and student loans?
