The Lesson: You need to make choices about how to spend money.
At this age, it’s important to explain to your child, “Money is finite and it’s important to make wise choices, because once you spend the money you have, you don’t have more to spend,” says Beth Kobliner, author of the New York Times bestseller Get a Financial Life. While at this age, you should also keep up with activities like the saving, spending and sharing jars, and goal-setting, you should also begin to engage your child in more adult financial decision-making.
Activities For Ages 6 To 10
- Include your child in some financial decisions. For instance, explain, “The reason I chose the generic grape juice rather than the brand name is that it costs 50 cents less and tastes the same to me,” says Kobliner. Or talk about deals, such as buying everyday stuff like paper towels in bulk to get a cheaper per-item price.
- Give your child some money, like R20, in a supermarket and have him / her make choices about what fruit to buy, within the parameters of what you need, to give them the experience of making choices with money.
- When you’re shopping, talk aloud about how you’re making your financial decisions as a grown-up, asking questions like, “Is this something we really, really need? Or can we skip it this week since we’re going out to dinner?” “Can I borrow it?” “Would it cost less somewhere else? Could we go to discount store and get two of these instead of one?”