Money Talks Monday (5/28/18)

How do I start my children out developing a basic understanding of money even at a young age?

I am frequently asked this. For this week’s Money Talks Monday I am going to share a way you and your toddler can bond over a lesson in basic financial management. A two or three-year-old child faced with a choice between a penny, dime, and nickel will almost always choose the nickel because of its size…naturally believing because it is larger it is better or has more value. While very young children won't fully understand the value of money, they can begin to learn the names of coins. One way to do this is to play the coin identification game. You and your child can trace around the outside of various coins and color in the shapes. Then invite your child to match the coin to the image while discussing each one's name. Toddlers may try to swallow coins, so always make this a family activity for their safety and to enjoy a solid bonding experience.

Young children also love to play store, but an imaginary shop in the living room is more than just a fun way for your child to exercise his or her imagination. By exchanging play money for goods, your child begins to understand the basics of commerce. Use cereal boxes, fruit, sponges, or paper towels as store items. Together, make pretend money and shop till you drop!

These are two fun and educational ways to start toddlers and young children out on the right path to financial health while simultaneously building a strong family unit. Consider these and other innovative ways of teaching your littlest ones about the value of a dollar.