Start with simple tasks at first.
- Introduce them to money. Just let them look at money and coins. Use them as counting tools 5 pennies equal a nickel, 4 quarters equal a dollar.
- Communicate the value of money and how work lead to getting paid, that money is used to buy things and that become money to pay to those employees or owners.
- Communicate the differences between needs, wants and wishes.
- Have your child set goals to learn the value of money, like a goal to by a new baseball mitt for the spring.
- Value of saving rule of 70. Divide the interest rate into 70 and that gives you the time it takes to double your investment. If you have a 5% rate of interest it takes (70/5) or 14 years to double your original investment.
- Encourage savings from allowance for $5 earned save $1.
- Take your child to open their savings account. Let them open the monthly statements to see the interest they have earned.
- Have your child put the receipts for their spending into an envelope so they can see what they have spent their allowance on.
- Teach your child about ads on TV, radio and newspapers and their meaning. That they want to tell you about their products to have you buy them.
- Credit cards. Let them look at your cards, the bills and that they are not free.