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How to Teach Your Preschooler the Concept of Money

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Teaching a child the value of money is challenging. But, teaching a pre-schooler how to count change and carry money around in a purse or wallet can be even more difficult. It’s one thing to make sure they know what it looks like and another to actually learn how to work with it. That’s a job for parents, grandparents and whoever else is responsible. The first step is getting their attention and then helping them learn.

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Money is valuable.

There are many ways to teach a child about money, but the first step is to show them that it is valuable. Money can be used for anything from toys and candy to food and clothes. You don’t want them to think of it as something you can use for everything or they may not understand the value of saving up for something special. Instead, make sure they know that money has value and should be used only when necessary.

Money Vectors & Illustrations for Free Download | Freepik

We work for money.

A child should understand that people work to get money, and is what enables us to buy stuff. So we have to be careful when we are spending money because we have worked for it and our efforts are not something that should be wasted. Most importantly money has association with work – meaning no work, no money. So make sure they know how hard people work to get money and how important it is to spend wisely.

Money is a limited resource.

You have to make choices about how to spend your money. It’s important for a child to understand that there are many things they want and need, but that money is limited and must be spent carefully. Instead of just giving them everything they want, make sure they know how important it is to choose wisely.

You can save money for later.

This is a concept most adults also have diffculty understanding. Instead of spending money extravagantly we can save it for later. A child should be taught they he/she can save money and buy something big. By doing this the emotion of greed can be controlled from a young age.

Saving money Vectors & Illustrations for Free Download | Freepik

Encourage

Don’t discourage your children from trying to earn money by helping out. If they want something and are willing to work for it, let them.

The best way for students to learn about money is by using real money. It sounds obvious, but it has to be done very carefully. The key to teaching children about money through play is to mimic how things work with real money. The simplest way to do this is by finding physical representations of the same monetary units that you use in your everyday life (for example, getting a collection of coins together) and pay them for doing household chores.

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