Money Skills for Kids

Lesson 1: Kindergarteners And Money

Separating wants from needs

Children are taken in easily by what they see other children play with, wear, or eat. Similarly, children’s television shows are riddled with catchy commercials aimed at the young consumers. Product recognition then leads to temper tantrums in the grocery store, when junior demands yet another box of cereal that will only serve to take up more counter space, together with the other boxes of uneaten cereals. This can be avoided with a bit of role-play at home.

Lesson 1
Play make-believe store at home with real coins and your child’s toys or some cans and cereal boxes from the pantry. Clearly label the items of your “store” and give your child a limited amount of coins. Kindergarteners will probably want to buy everything in the “store”, but remind them that the rule very clearly states that they can only buy items for which they can pay. This will teach the child that while everything is for sale, not everyone can be bought. This is a great opportunity to think out loud together about the choices your child is making, for example: “If I buy the candy for 2 pennies, and the soda for 2 pennies, I will only have 1 penny left. If I buy the bread for 2 pennies and the cereal for 1 penny, I have 2 pennies left. If I buy the first set of items, I will have no breakfast. If I buy the second set of items, I will have breakfast. I am ok without candy and soda, but my tummy will rumble without breakfast.”

Lesson 2:
Allow your child to help you shop and compare prices at the grocery store. Once your child masters the concept of “playing store”, s/he can now graduate to the real store. Explain to your child why you buy one kind of toothpaste instead of another kind. Help your child understand that even the same item, like toothpaste, sometimes can have various prices, such as different brand names. You child will now understand that you watch what you spend the same way that they watched what they spent when you were playing store together.

Lesson 3:
Introduce your child to coupons. This is a great time to get your child involved in actually saving money at the grocery store, rather than just spending it. Explain to your child that the companies, who make the cereal s/he eats, sometimes print coupons to get more people to buy the cereal. Show her/him the coupon section of your Sunday paper and explain how the small piece of paper, when properly cut out and presented at the grocery store, will save you $1. (Or $2, if your local grocery store runs double coupon specials!) Allow your child to help you clip and save the grocery coupons you find, and then the next trip to the supermarket can become a treasure hunt for the items that are noted on the coupons you are going to use!

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