My parents didn’t teach me about money, assuming the public schools would. They did. I learned about budgets, checks, and interest. Never in great depth and sparingly in related subjects.
I never learned what passive income was or how repaying a loan starts by paying interest first so that the bank can charge as much interest as mathematically possible.
Homeschooling gives us the freedom teach our children according to our priorities so we painstakingly teach our kids about money. First, we opened our oldest a Johnny Appleseed Savings Account when he started learning to count money. He saved and spent, even saving $100 for summer camp! Watch Connor talk about Savings Accounts below!
We used this board game, Money Bags, to teach Connor how to count money and make change. Its a fast paced game (15-20 minutes) where you roll dice and collect money. You have the option to turn in coins for larger denominations and bills. The person with the most money at the end wins! We all have fond memories of this game and will use it with my 3 younger kids! I am currently working on a gameplay video so check back in a few days for that link!
Since then, we have given him money and made him earn it depending in the situation. We split up his chores into mandatory and paid so he learns that you don’t get paid to do some work and how hard money is to earn. We also are strict about making him live within his means. Rarely do we spot him money if he can’t afford what he wants.
Formally, we started with counting money and making change. Right now, we are going through a personal finance curriculum provided by The Actuarial Foundation (free here). Watch the unboxing here.
We also play Cash Flow for Kids, a board game (because, you know, #gameschooling) that illustrates the difference between active income, passive income, and liabilities. Watch us play below.
In the future, we will delve more completely into finance with him based on his own interests. We will play The Stock Market Game (this website) and help him start building a real, small business (like mowing lawns, bike or electronic repair, blogs or YouTube channels, etc all based on his interests) so, hopefully, he will be able to support himself when he graduates. Read about that goal here.
I feel like our society doesn’t prepare any of us to deal responsibly with money, but I will change that in my family.