When I was a kid, it wasn't the coin value that made me rich, but instead the number of coins I had. My friend could have three loonies in her hand, yet if I had five nickels I was the one who had the most money!
Understanding the value of money when we're young can be hard, especially as we’re just starting to learn the concept of numbers, counting and math. It’s recommended you start talking to your kids about money early to help create a foundation for financial knowledge.You can build on this knowledge by continually discussing money and introducing new financial concepts as they grow. Having these conversations will provide them with strong financial literacy skills and an understanding of managing money, helping them to make smart, responsible decisions with their money in the future.
To get you started, here are a few ideas on how you can introduce the concept and value of money to your kids at an early age.
Set up a pretend store or restaurant and take turns playing the role of customer and worker. The worker will be responsible for advising how much the purchase is and providing change. As the customer, you’ll be responsible for making purchases and giving money to the worker. If you do not have enough money, you may have to decide on which items are a need vs. a want. Role-playing will not only introduce the concept and value of money but also allow you to discuss the difference between needs vs. wants.
Sort & Stack
A great way to introduce money and show the different values of money is through a sorting and stacking activity. Grab your piggy bank, empty onto a table and have your child sort the coins by size, and any bills by colour. Afterward, show them the different sizes and colours and how each equates to a different value. Once they understand that each coin or bill is worth a different amount, take it one step further and show them how much of one coin or bill would be needed to equal the same amount as another coin or bill (e.g., five nickels = one quarter or four $5 bills = one $20 bill).
Play a Board Game
Have a family game night and help teach the concept of money by playing games such as Monopoly™, Payday™ or the Game of Life™. Allow your child to be the banker, with some help of course, to teach them the different values of money, counting and providing change.
The $5 Dice Game
Grab some dice and coins (or create your own) and see who can get to $5 first! In this game, players take turns rolling a die and collecting coins for their pot, based on the following values:
1 – Nickel
2 – Dime
3 – Quarter
4 – Loonie
5 – Toonie
6 – Lose a Turn
The winner is the first player to reach exactly $5. If collecting a coin would cause for the player to go over the $5, they lose their turn. Change it up, but choosing your own dollar amount to try and reach. This game is a great way to teach your child the different values of money as well as develop their skills in adding and budgeting by not going over.
Flyer Price Tag Activity
To help understand how much money would be needed to purchase a treat from the candy store, or the latest toy, play the Flyer Price Tag game.
Grab your local flyers and have your child pick out items that they’d want to buy. Cut them out (including the price) and place on the table. Then, using real money or money you’ve created, place the exact amount needed in order to make that purchase. Depending on age, you can also introduce GST and PST and how to account into the amount of money you'll need to buy the item.
Take it one step further, and use the money your child has saved in their piggy bank. This can help teach them how much of their money they’d need to spend in order to get that item. If they do not have enough for that item, it allows you to start the conversation of savings. This also is a great activity to talk about needs vs. wants and making smart decisions on how you spend your money.
When talking to your kids at an early age about money, be sure to keep it fun to help them stay engaged. Use real-life examples of things that interest them to help them relate to what you’re teaching.
Talking about money can be hard – when we’re young and when we’re adults. Introducing and talking about money early on allows our kids to gain confidence and not be scared to ask questions when it comes to money. It can also positively influence their behaviours on managing money, as they get older.
Start talking to your kids about money today! Do you have another fun game or activity for kids that introduces the concept and value of money? We’d love to hear it - share with us here!