6 Tips to Teach your Toddler About Money {Starting Early to Save Later}

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When asked my Hubs what comes to mind when you mention the two words “Emily” and “Money”, my husband responded –“Scary, {laughs} seriously”?  (Insert sassy comment from me here!) “Okay, how about, Unintentionally Spacey?”

If you asked my mother what comes to mind with “Emily” and “Money” she probably wouldn’t be as nice about it.

I admit it, I am really really bad when it comes to money.  I think I only balanced my check book the first week I had it.  I have had overdraws, I have had to borrow money to cover rent, and I had credit card issues in college.  So much so I didn’t even allow myself to own another credit card until just this past year.  (And that was only because when the hubs deploys, sometimes things (emergency car issues and what-not) come up.)

I am not embarrassed to talk about my past money issues. In fact I will talk about it with my children when they are old enough to understand.  Maybe if they hear how messing up my credit affected me to this day, they will not want to get into the same situation.

In the mean time, here are things I plan to do with Squishy (and future children) to start off learning about money early!

1. Toys – There are many toys out there that feature money, and teach your child about how it works.  From the simple piggy bank featured about to cash registers, or banks.  Money play can make for Fun and Smart Days.
2. Sorting – This is something most Tots can do starting really early.  We have a pile of change that we put into Squishy’s bank.  I plan on starting to do this with him when he is 2 (or at least after his two year molars come in and he isn’t trying to gnaw on everything! Together we can sort the different types of coins and then put them into the piggy!
3. Piggy Bank – Part two of the above.  Talking about why it is important to put money in his Piggy Bank.  Saving all your change to buy something you really want.
4. Arts and crafts – Whether it is coloring pages featuring the different types of money, or running a crayon over the coins to make impressions.  This is an early opportunity to teach them while they are having fun with art.
5. Being open – I plan on being real about money talk with my children.  While I don’t ever want them to worry about us making bills, I will talk to them frankly when they ask for something extra.
   Example: Mom why can’t I get another super cool truck? Well, honey – we need to make sure all important things are paid first.  Or because it isn’t on the list, and we only have money today to buy what is one the list.  But if you would like to help out around the house, then you can buy your own truck.
   (Yes, this sounds to advanced for a toddler, so this is probably more for a preschooler)
6. Earn to Redeem – I believe in basic unpaid chores like making your bed, and putting your laundry away. But I also think a great way to teach how money works is a reward system.  If my child would like to – each week I will have extra tasks (Starting around age 3-4) that they can help me do around the house.  I plan on having a chart, with a point system.  Each extra task will give them points they can redeem for small rewards or big rewards.
   Examples would be:  
   • 20 extra minutes of TV time.
   • You pick today’s fun-time: Park, Museum, etc.
   • Ice Cream or Dessert during the day.
   • Treasure Dive (This is a box that will have special small treats they can redeem their points for.)
   • Movie in the Theater.
   • Dinner or Lunch out to eat.

From the age of 2+ these are some great ways to teach your Toddler and Preschooler about money, how it works, and why it pays to save.  Maybe my children won’t have the issues with money that I do.