Teaching Kids the Basics of Saving and Investing

 

Introducing children to saving and investing concepts can be both fun and engaging by using interactive methods and relatable examples as well as set them up for their future. 

Here are some ways you can introduce and teach your children about saving and investing. 

    Games and activities

1. Savings jars: Use jars or envelopes labeled for different purposes (e.g., saving, spending, donating). Let children allocate their allowance or money gifts into these jars.

2. Board games: Play money management games like Monopoly, The Game of Life, or Payday that teach financial concepts in a fun way.

3. Online games and apps: Use educational apps and online games designed to teach kids about money, saving, and investing (e.g., PiggyBot, Savings Spree, Bankaroo).

    Practical experiences

1. Opening a savings account: Take your child to the bank to open a savings account. Explain how interest works and let them see their money grow.

2. Family budgeting: Involve children in family budgeting activities. Show them how you plan and allocate money for different expenses.

3. Allowances with conditions: Give children a weekly allowance and encourage them to save a portion of it. Discuss setting savings goals for something they want to buy.

   Storytelling and books

1. Financial literacy books: Read age-appropriate books that teach financial concepts (e.g., "Money, Money, Honey Bunny!" by Marilyn Sadler, "Alexander, Who Used to Be Rich Last Sunday" by Judith Viorst).

2. Real-life stories: Share stories about how you saved money for something important or how investments can grow over time.

Hands-on projects

1. DIY bank: Have children create their own piggy bank or savings jar. This makes saving tangible and personal.

2. Mini business ventures: Encourage children to start a small business, like a lemonade stand or a bake sale. This can help them learn about earning, expenses, and profits.

   Visual aids and charts

1. Savings goal chart: Use a visual chart to track progress towards a savings goal. This can be motivating and make the concept of saving more concrete.

2. Interest and growth charts: Create simple charts that show how money grows over time with interest or investments.

Discussions and teaching moments

1. Everyday decisions: Use everyday shopping trips to discuss needs vs. wants, price comparisons, and the value of money.

2. Investment basics: Explain basic investment concepts using simple terms. For example, compare investing to planting a seed that grows into a tree over time.

Technology and simulations

1. Virtual stock market: Use stock market simulation apps or websites where kids can practice investing with virtual money (e.g., MarketWatch, HowTheMarketWorks).

2. Educational videos: Watch educational videos together that explain financial concepts in an engaging way (e.g., "Financial Literacy for Kids" on YouTube).

Rewards and incentives

1. Matching contributions: Offer to match a portion of what your child saves to encourage them to save more.

2. Savings milestones: Celebrate when they reach savings milestones with small rewards or special activities.

By combining some of these methods, you can create a well-rounded and engaging approach to teaching children about saving and investing to help them better prepare for their future. 

Parenting books

 

If you are like me and you want to be prepared for what is to come you might be interested in books on parenting that cover a variety of topics and approaches and below I have put together a list of some books on different stages of the parenting journey. 

General Parenting

1. "The Whole-Brain Child" by Daniel J. Siegel and Tina Payne Bryson: This book offers strategies for fostering healthy brain development and helping children handle difficult situations.

2. "Parenting with Love and Logic" by Charles Fay and Foster Cline: Focuses on raising responsible children through a balance of empathy and consequences.

3. “How to Talk So Kids Will Listen & Listen So Kids Will Talk" by Adele Faber and Elaine Mazlish: Provides practical communication techniques to improve the parent-child relationship.

4. “Parenthood: an exciting journey” by Phoebe M.C. This book offers information about navigating pregnancy, childbirth and the first year of babies life. With money saving skill information and more

Positive Parenting

1. "Positive Discipline" by Jane Nelsen:

Emphasises mutual respect and non-punitive discipline strategies to teach children self-discipline and responsibility.

2. "The Explosive Child" by Ross W. Greene: Offers a collaborative approach to dealing with children who are easily frustrated and prone to outbursts.

 Development and Behaviour

1. "The 5 Love Languages of Children" by Gary Chapman and Ross Campbell: Helps parents understand and meet their children's emotional needs through love languages.

2. "No-Drama Discipline" by Daniel J. Siegel and Tina Payne Bryson: Focuses on effective discipline that strengthens the parent-child bond and encourages positive behavior.

Specific Challenges

1. "Raising Your Spirited Child" by Mary Sheedy Kurcinka: Provides strategies for understanding and nurturing highly energetic and sensitive children.

2. "The Gift of Failure" by Jessica Lahey: Discusses the importance of allowing children to experience failure and learn from it to build resilience and independence.

Early Childhood

1. "Bringing Up Bébé" by Pamela Druckerman: Explores the differences in parenting styles between American and French parents, emphasizing balance and independence.

2. "Healthy Sleep Habits, Happy Child" by Marc Weissbluth: Offers insights into establishing healthy sleep patterns for children from infancy through adolescence.

 Teen Parenting

1. "Untangled: Guiding Teenage Girls Through the Seven Transitions into Adulthood" by Lisa Damour: Focuses on understanding and supporting teenage girls as they navigate adolescence.

2. "Brainstorm: The Power and Purpose of the Teenage Brain" by Daniel J. Siegel: Explains the inner workings of the teenage brain and offers practical advice for fostering healthy development.

Mindful Parenting

1. "The Awakened Family" by Shefali Tsabary: Emphasises mindful parenting and the importance of being present and conscious in the parent-child relationship.

2. "Simplicity Parenting" by Kim John Payne and Lisa M. Ross: Advocates for simplifying the child's environment and schedule to reduce stress and foster well-being.

These books offer a wealth of knowledge and practical advice, covering various aspects of parenting from infancy all the way through adolescence.

Fun and Affordable Family Activities

 

There are many budget-friendly ideas for family outings and entertainment that can be both fun and affordable.

Outdoor activities

1. Picnics: Pack a meal and head to your local park or even the beach.

2. Hiking: Explore local trails and nature reserves. 

3. Biking: Go for a family bike ride on nearby trails or around the neighborhood.

4. Beach or lake Day: Spend the day swimming, playing in the sand, and enjoying the outdoors.

5. Geocaching: Go on a treasure hunt using a GPS or smartphone to find hidden caches.

Community events

1. Local festivals and fairs: Many communities host free or low-cost festivals and fairs.

2. Farmer markets: Visit a local farmer markets to explore fresh produce and local crafts.

3. Library events: Check out free events, story times, and activities at your local library.

4. Community centers: Look for low-cost or free activities and classes offered by local community centers.

At-home activities

1. Movie night: Have a family movie night with homemade popcorn and cozy blankets.

2. Board games and puzzles: Spend an evening playing board games or working on puzzles together as a family. 

3. Arts and crafts: Get creative with DIY crafts using supplies you already have at home.

4. Backyard camping: Set up a tent in the backyard and have a camping experience at home.

Educational outings

1. Museums and zoos: Many museums and zoos offer free or discounted admission days.

2. Historic sites: Visit local historic sites or landmarks.

3. Nature centers: Explore nature centers and wildlife preserves.

Seasonal activities

1. Pumpkin patches and apple orchards: In the fall, visit pumpkin patches and apple orchards for picking and fun activities.

2. Holiday lights: Drive or walk through neighborhoods known for their holiday light displays.

3. Sledding and ice skating: In the winter, go sledding or ice skating at a local park or rink.

Miscellaneous ideas

1. DIY photo scavenger hunt: Create a list of items or landmarks to find and take photos of during a walk or drive around town.

2. Stargazing: Find a dark spot away from city lights and enjoy a night of stargazing.

3. Volunteer together: Spend time together as a family volunteering for a cause you care about.

Memberships and passes

1. Library passes: Some libraries offer free or discounted passes to local attractions.

2. Memberships: Consider annual memberships to places you visit often, such as zoos, museums, or botanical gardens, which can save money in the long run.

By planning and being creative, you can find numerous ways to enjoy quality time together as a whole family without breaking the bank.