Thursday 18 May 2023

How To Teach Children Money Management

 In a world where every aspect of life is moving rapidly, it becomes imperative for all of us to catch the pace of it. As a parent, your primary responsibility is to ingrain life virtues in your children early to prepare them for the world. Additionally, teaching them the basics of finance and financial literacy can significantly contribute to building their confidence. 

Financial literacy that begins at an early stage helps to develop a rich value system whereby they learn the importance of what they possess. They can be taught the difference between necessary and unnecessary expenses and how to prioritize spending. Financial know-how helps the kids to make better monetary decisions and inculcate the habit of saving and investing in the right direction.

But one must avoid risking hard-earned money to create the finance lessons learned, for this simulation games come into the picture. 

money saving games - auraofthoughts

Introduce Finance Terminology:

The concept is often known to kids and young adults, but they need to be made aware of the terminology and vocabulary of it. Introducing the kids to the functioning of banks, and financial terms like deposits, withdraws, debit, credit, and cheques make them understand the money management concept very well. 

Set an ideal Example:

Parents set an ideal example for their children as they subconsciously observe the decisions taken during critical financial situations. Like many things a child learns steadily from observation, money management is also one of these virtues. 

Involving the children in budgeting the family's finances helps them draw a roadmap for making sound financial decisions. Financial capabilities in children will eventually lead to economic progress and raise the standard of living.

Adequate financial knowledge inspires confidence in teens, who are less likely to be impacted by unforeseen outcomes.

Owning Small Events:

Children learn through a practical approach, and for this, as a parent, one can assign small events by asking them to assist in an event such as a birthday day party or farewell with a budget and asking them to stick to it or how to arrange for sponsorship can help them maintain the budget and aid them in savings.

Opening a minor savings account:

Introducing the kids to the functioning of banks, and financial terms like deposits, withdraws, debit, credit, and cheques make them understand the money management concept very well. 

To teach children about responsible money management, parents can consider opening a minor savings account, providing them with a kid-friendly debit card, or setting up a custodian brokerage account. These options can help children learn about the banking system and how to manage their finances wisely.

Several banks offer the facility of opening a child bank account for minors above the age of 10 years.

Learning through Games:

Do you remember playing board games like Monopoly, Business, or Life? 

In today's era, one can learn the business and various terminology through Business Simulation Games. Teaching children about finances through games has become more engaging and fun with the rise of realistic online games. These games have replaced traditional board games and are effective in helping young learners understand financial concepts. Age-appropriate games are available for different age groups.

Money simulation games are an excellent way for children to learn essential life skills, such as counting money, making change, and creating bills. Specifically, games such as cashier simulation, grocery cashier, and cashback provide an interactive experience where kids can practice adding grocery items to a cart and handling cash. 

Through these games, children can become familiar with different types of notes and coins and gain valuable experience managing money in real-life scenarios. 

The simulation aspect of these games allows for a safe and controlled environment for kids to learn and develop these essential skills. Here is the Cash Back; I liked the simple yet practical usage of the game where children get to know and adapt crucial aspects of money. 

Simulation games are a highly effective way to teach children arithmetic skills in a fun and engaging manner. Without even realizing it, children can develop their math abilities while enjoying these games' interactive and immersive experiences. By providing an enjoyable learning environment, simulation games can help children build a strong foundation in arithmetic while fostering a love for math that can last a lifetime.

It is crucial to impart financial literacy skills to children early on, particularly in money management. This skill will enable them to appreciate the importance of being accountable for their finances, ultimately leading to a more tranquil and stress-free life. 


  1. I feel we don't have to wait for our kids to get teenagers to talk about money matters. From casual conversations, they learn it better and it stays in their memory as they can relate the theory with the practical example. Something simple like saving for their next phone purchase and asking them to contribute half of the price can be a good start. We did that with our daughter and the smile she had on her face of contributing towards the price was special.

  2. yes teaching money management to kids at young age is important to make them aware about one of the most important of life. money games are great way to make this process interesting for kids. they learn a lot while having fun too, with this method.

  3. We should teach money management from a young age. Your tips are very insightful.I learnt money management only from Monopoly and Business. What I learnt from my mom was micro managing. We were 5 siblings and my parents. To this day, I wonder how she managed to run the house on a shoe-string budget and yet not make us feel that we lacked anything.

  4. Money Management is a topic which I personally believe need to be taught the moment kids got an idea what money is and what it can do. I am always in favour of educating kids about money management. You jotted the correct points in this post.

  5. My son is showing a lot of interest in learning about money management and savings. It started 2 months back when we started playing monopoly with him. Now he wants to save money and buy things on his own. This post is a must read for parents who want to teach money management to their kids.

  6. Teaching children money management skills is really important! Money simulation games are a fantastic way to teach children about money management while making the learning process engaging and enjoyable in a risk-free environment. Such games can help in instilling financial responsibility in children.

  7. Teaching children about finance is such an important thing to raise them as adults who respect and value money and it's worth. Board games are a great way to teach them basics, and yes they learn fast so terminology knowledge is a good idea.

  8. I feel it is extremely important to teach our kids the value of money. especially when now most of us are doing well, we tend to take the cash inflow for granted and unknowingly spoil our kids who eventually would take the value of money for granted too.

  9. This is so important for kids. They need to understand money is no easy and a proper management and value for money is important.

  10. I agree with you that It is crucial to impart financial literacy skills to children early on, particularly in money management


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