“A Penny saved is a penny earned” remarked Benjamin Franklin over 200 years ago. As smart as Ben Franklin was – the man discovered electricity! – even he could not have foreseen the average American amassing over $160,000 in debt. And according to NerdWallet, of that total, $15,355 is credit card debt.
The balance of the $160,000 is mortgage, automobile and student loans. That debt is the price of being a productive adult.
So, let’s focus on the credit card debt. Much research points out that money spending habits begin to form in children as early as elementary school and become entrenched by high school. It doesn’t take Sherlock Holmes and Watson to discover that money-forming habits are taken from the home. This means you, mom and dad. Put another way, monkey see monkey do.
I am not here to judge. If you and yours are bucking the consumer debt total up, that is your business. But wouldn’t it be nice to send your children out into the world armed with some basic money management skills? Like spend less than you make?
Engage the Brain researched 5 websites that teach money management skills in a fun way to kids. Check them out:
Practical Money Skills – This website offers money advice for kids, parents and teachers. There is a great game section where the site has partnered with the NFL and FIFA that teaches money skills to kids while they play a computerized football or futbol game.
Rich Kid Smart Kid – This website is loaded with games to teach kids about the value of money. There is a page for a parent with lesson plans to help extend the learning beyond the video games on the site.
Change Maker – This fun game for elementary age kids is found on the funbrain website. The game practices making change for a certain amount of money. It offers escalating levels of difficulty by making change for totals less than a dollar, under $5.00 and under $100. Players earn money in their piggy banks for correct answers. The game even allows for different countries currencies – Canada, Mexico and England.
biz kids – The slogan on this site is “no homework, no school, just games.” The games are appropriate for upper elementary school and middle schools age kids. These games are more about financial strategy and running a virtual business. Kids learn what owning a business entails.
Citi Group – Citi Group has a section on its website devoted to teaching children about financial literacy. There are interactive games for elementary age students and middle/ high school age students. Each game has printable resources for parents to extend the learning beyond the computer screen.
Wrapping it up
Spending habits are formed early in life. Like all habits, good ones are as hard to break as bad ones. Help your child form good financial habits early in life. By introducing financial terms and sound money management fundamentals, you will help your child successfully navigate his way through the difficult world of debt and savings.
David Karch (Learning Specialist with Engage the Brain)