One of the most important life skills that anyone can acquire (even as a child) is the ability to manage money. At a very early age, attitudes and habits towards money begin to form. This is why it’s such a good idea to make sure that your preschoolers develop positive financial habits as early as possible. Teaching your preschoolers the value of money can be easier than you think. Here are some helpful tips that you can use to teach your child about the purpose and value of money.
Once your preschoolers know how to count, you can start to explain to them the value of each coin and its relationship to other coins. For example, you can teach them that five pennies are worth the same amount as one nickel, and two nickels are worth the same amount as one dime. This will help them understand that all coins are valuable, but some coins are worth more than others.
A piggybank is another great way to help your preschoolers understand the value of coins. Teach them how to save coins in their piggybank and have them pick a time to empty it out and count the coins inside. Your children will enjoy sorting the different coins into separate piles and adding up the value of each pile.
Money as a Currency
Preschoolers can learn that money is a way of exchanging things. You can demonstrate this by giving your child a small amount of money (a dollar or two) and then asking them to select a piece of candy or fruit from the store. Explain to them that the money you gave them can be exchanged for the item they selected. This will help them understand how valuable money is in day to day life.
Young children can also learn that money is a currency through playing “store” and using play money. You can encourage this game by setting up a small “store” in your house and allowing “customers” (you can use stuffed animals or dolls for this) to purchase items using the play money. Having them set prices on different items can teach them that certain things are more valuable and therefore cost more money. This will help them understand that different amounts of money are used in acquiring different things.
Teaching your preschoolers that couponing is a practical way to save a little extra money on an item is another good way to help your children understand the value of money. You can use coupons as learning tools for your children by allowing them to look through a coupon book with you and having them pick out which coupons they think would be the most useful for your family. Cut out these coupons and put them in an envelope.
The next time you take a trip to the store, put your preschoolers in charge of carrying the coupon envelope. Ask them to help you locate the items on the coupons. This is a valuable learning experience for your children on the importance of finding discounts and choosing the best deals.
One of the most important financial habits for children to learn is how and why to save money. A great way to teach this is by making a savings account for your preschoolers. Young children will get excited about this because it makes them feel like adults by having their own bank account. It is also a great way to teach them financial responsibility. If your children receive an allowance, encourage them to deposit a percentage of it into their savings account so they can watch the money grow over the years.
At Prep Academy Schools, one of our main focuses is on mathematics. Beginning in our Pre-K program, students learn basic number concepts by manipulating and counting real objects. We also work to instill life-long values of honesty, integrity, and responsibility, which are all great qualities to have when learning the value of and managing money.