Minimalism, and living simply can be motivated by many values. Since money is often a strong motivator, and saving money is a huge advantage of minimalism, I thought I’d spend some time today talking about how to approach a financial education for kids.
Chances are you found my website because you’re looking for ideas for a simpler homeschool, but here I am talking about MORE to do with your kids. Here’s why: minimalism is tightly linked to financial literacy, AND financial freedom. In an era where the majority of Americans are stressed about money, and bound to unsecured debt, we have a unique opportunity to give our children an amazing financial education.
In addition, if you really want your children to choose a simpler life – a less consumerist life – once they walk out the front door, minimalism must be a lifestyle and a value system that we embed in our children’s character and intelligence, rather than merely a rally to “declutter and purge!”
Minimalism is much deeper than simply throwing out our junk. Minimalism is about a new level of appreciation, and new level of understanding – about our money, our neighbors, our earth, and our space and time. So, teaching financial literacy to children hits one of those tenants squarely on the head: understanding our money.
How are you with your family’s finances? How do you feel about your own financial literacy? How do you share your resources? What purpose does money serve? How are your children perceiving money?
Clearly, finances are a hefty subject – one that is personal, and often emotional. Let’s talk about some resources to help us wrap our heads around the concept at every age!
As I write this, my children are ages 4-12 years old, and my husband and I have been small business owners their whole lives. We are not shy about talking about how cash flow works inside and outside a business (although I leave actual dollar amounts to their imagination, most often). Growing up in a home that was financially turbulent, it is important to me that my children grow up in a financially secure environment, but yet, not take money for granted. This is a topic I’m intentional about.
And, if we’re being honest, regardless of your current or past financial experiences, it’s is just plain REALLY IMPORTANT that our children enter the world with a comprehensive financial education, and perhaps, even a plan and some savings! It’s a topic I want to encourage every family to be intentional about :).
With all that said, let’s just launch into the resources that we have enjoyed for ourselves and our children, or plan to use for our children, by age. In true minimalist fashion, I am not going to list every resource for a child’s financial education here. There are tons. You don’t need them all. You need a few great ones. I hope you’ll find these as helpful to your money conversations as we have.
Hey, while you’re here, leave us a comment below and tell us which books on financial education for kids you have loved!
Preschool and Young Elementary
At this age, we are counting money, learning about money, and watching mom and dad pay with money. Our children are learning what to expect at the store, on holidays, and on their birthdays. At a young age, children start internalizing a family’s money values: they are reading between the lines about what money is used for (image? pleasure? to show love?). During this time, marketing is particularly appealing to children, and they start learning their family’s money boundaries and limits, or lake thereof. Young children are asking how much things cost, and the wheels are turning to try to understand the true value of those metal coins and paper dollars.
During this time, we are reading storybooks about money – not all at once, lecture style, but sprinkled among other life lessons and interesting stories. There are many, many great stories about money management for children. These will get you started, and are sufficient. Branch out as you want!
Consider these selections for teaching financial literacy to your youngest learners:
Berenstein Bears’ Trouble with Money
Berenstain Bears’ Dolars & Sense
Berenstain Bears Get the Gimmies
One Cent, Two Cents, Old Cent, New Cent
And, of course a good set of play money is always a big hit!
Older Elementary & Middle School
During this time, children can handle more difficult and abstract concepts about what money represents, and how it can grow. Consider covering the following topics with your children:
- Being a cereal consumer
- Keeping a spending record
- Creating a budget
- Banking
- Credit Cards
- Debt
- Interest
- Investments
- Insurance
…and then some.
The first book I recommend on the topic is You Wouldn’t Want to Live Without Money.
The content of this book was informative for my 4th-6th graders, with enough pictures and interesting bits that even my littlest ones didn’t mind the read aloud! This books covers the story of money, including the gold standard, representative system, fiat system, as well as the potential future of money. A great starting point.
Then, for ambitious earners, and budding investors and savers, consider the following book:
How to Turn $100 into $1,000,000. Earn! Save! Invest!
High School & College
In addition to the middle school, and parent books I have listed, here are a couple books that high school- and college-aged children may appreciate as they take ownership of their nickels and dimes.
I asked my Boss-Mom friends with older kids what they recommend, and here are the most popular choices. Considering that these both come from money-management gurus, these are certainly where I would be most likely to turn, also:
Parents
Here are a few books that I appreciate as a parent, and I can imagine older kids reading themselves at an appropriate time. Often, educating ourselves about money makes us a more natural teacher – it’s easier to weave the subject into our daily lives. I know that these two books TOTALLY shaped how I approach a financial education for kids in our home!.
Let’s start with a book that lays out an entire financial management plan for your kids at every age, shall we? This is the book I would suggest for parents who just are not sure how they want to approach financial responsibility with their children. It’s particularly good for parents who have, or do struggle with spending and/or debt, and those who want to be intentional about how their kids manage the money they receive and earn.
Raising Financially Confident Kids
This series of books is what my husband and I are most likely to recommend to adults who want to not only be better with their money, but feel good about how they use it. This is the financial intentionality book, as far as we’re concerned, and it can be life-changing. The author has other editions available for other situations, as well. The clearer YOU are on your financial values and habits, the better prepared you will be to teach your children :).
How about you? How are you approaching a financial education for your kids?
> You might also like to read “What is Minimalist Homeschooling, anyway?”
