3 Ways to Teach Your Elementary Schooler About Money

Math and reading skills can go a long way toward a strong financial education.

A growing body of evidence suggests that financial habits are learned by age 7. Support the development of strong money practices by getting involved in your child's financial education. We aren't asking you to have your child balance your checkbook or manage your credit score. Instead, take an involved role in teaching basic math and reading skills in the context of personal finances. Ready to get started? Read on to learn more.

1. Read together

Reading together is one way that parents can build a learning environment. Take it one step further by reading books with money-related themes, and turn your child's literacy skills into financial literacy skills.

A variety of books contain money themes that are accessible to young children. The Berenstain Bears books are famous for their elementary-school reading level and family-friendly stories. Berenstain Bears: Trouble with Money takes the learning one step further to include themes of earning money to reach a goal.

Another highly-regarded book, You Can't Buy a Dinosaur With a Dime, makes the case for saving your allowance, as the main character Pete makes financial decisions. Through the story, Pete earns an allowance, saves toward a goal, overspends, and learns the importance of financial responsibility.

2. Involve them in errands

When it comes to personal finances, learning experiences surround us in our day-to-day lives. Errands are one incredible opportunity to teach math and money skills, as long as you take the steps to involve your little ones.

Take a grocery store trip, for example. Youngsters can help determine which products on the shelf are more costly, thereby learning the value of comparing options. Ask your child how much they estimate the trip will cost. When it comes to paying for your groceries, give your child an opportunity to swipe the credit card or pay in exact change. In addition to learning math skills, a grocery store trip can give important context regarding the non-discretionary expenses your family pays for every week.

3. Pay a modest allowance

One of the most effective teaching tools you can use to make saving and spending real for your child is paying a modest allowance for chores well done. Earning leads to saving and eventually spending and along the way learning.

Before starting to pay an allowance, set expectations for how much the allowance will be, how often it will be paid, and under what conditions it will be paid. Then, work with your child to set a savings goal to work toward. By earning and saving money, young children can learn the value of not only their chores and contributions to a household, but also the value of setting a goal and saving toward it.

Allowances can be tricky to keep track of. Use technology, such as the Greenlight App, to help. Paying an allowance is one part of cultivating a strong financial education among children. By reading, involving them in errands, and paying an allowance, you can cultivate a strong financial education for your child. It's a win-win situation.