Teaching Your Kids About Money: School Age

Once children reach school age, they can start to understand a lot more about money.  Here are a few things to think about with your school age children:

• Identifying Money:  Make sure your kiddo knows what each coin/dollar represents.  A good way to know if they really grasp this is to ask (while holding one of each), "Which is worth more, a dime or a nickel?"  The nickel is bigger, so those that are still catching on will often choose that one.
• Making Change:  Present various situations and have your kiddo make change for you.  This is more applicable once they can do the math.
• Being Responsible with money:  If they lose their lunch money or misplace that Christmas money, you can't replace it.  (Or, in the case of the lunch money, they have to earn it back).  This will teach them to be more careful. 
• If you decide to give an allowance, be sure your kiddo stays within his/her means.  Help them set up a savings plan if they want to save for something big.  Just like mom and dad.
• Discuss your household budget on broad terms.  You don't have to use numbers, try a pie chart so you can illustrate how much is allocated to each category.  Go to mint.com to create your own household pie chart.  This helps kids realize how little is really left over after meeting all of the family's needs.
• Let your school age kids shop with you.  Have them use a calculator to add up the total of what the bill will be.  They can make it a game to see how close they will get.  They can also calculate price per unit and determine what is the best deal. 

Any way you can include your child in financial decisions helps to eliminate the mystery and also gives them confidence when moving into the tween/teen years.  It is then that they will really have to start being responsible with money.