You could have experienced the detrimental repercussions of bad money management at some point in your adult life. You might have incurred too much credit card debt or missed a payment on a bill when it happened. Your children will have a greater chance of escaping such pitfalls the earlier you begin teaching them financial literacy.

The idea that only grownups should manage money has changed. Today, children are encouraged to learn money management because it is viewed as a crucial life skill.

Children today must have a better understanding of how money works because the world has changed significantly in the previous ten years.

Financial literacy for children has recently been promoted by educators, financial experts, and social change campaigners. There are currently many workshops, camps, and other activities available to support children's financial literacy.

Financial literacy and its principles can be easily taught to children with the aid of this platform where course available with us.

Specialized courses in finance, investment, and entrepreneurship are offered by Acrotic Education, helping kids build a general understanding of money management.

It can be simpler than you think to teach youngsters financial literacy. But be careful not to interpret this as trying to teach them difficult financial terms. The four main age ranges are 6-8, 8–12, 12–16, and 16–18—are used to categorize all of its content for children between the ages of 6 and 18.

Financial Education for Young Children

The tips, lesson plans, and activities in this part will show you how to teach the fundamental concepts of early financial literacy to kids between the ages of six and ten. In order to develop responsible financial conduct in these young brains, financial literacy for kindergarten is absolutely essential.

Let's divide it into a few simple steps.

First Lesson: Choosing Your Budget(Choosing How Much to Spend)

Toddlers will find it simpler to make decisions on their own as they get older if they are given the flexibility to make simple judgements. Establishing structured, financial decision-making exercises for preschoolers and kindergarteners is therefore essential.

Second lesson: Budgeting

Early instruction in money classification establishes patterns for later behaviour relating to money management. Gradually introduce your children to the concept of categorizing their money into "saving," "spend," and "sharing" categories. 

Third Lesson: How to Make Money(Making a Living)

It is important for kids to understand that at this age, money must be earned and is not always available. Through early practise earning little amounts of money, a foundation and knowledge that work and money are linked are created.

Young children are expected to carry out some chores around the house just by virtue of being a part of the family or household.

Fourth lesson: Defining Money (What is all about Money)?

Children must be familiar with the names and values of the various coins and bills that are used to purchase goods and services. At this age, children learn the names of coins as well as their relative value in terms of purchasing power.

For children above 10 years  we see that Kids in kindergarten and elementary school have very different perspectives on money because they are already able to manage small amounts of money. Because of this, they have preconceived notions about money-related issues, so it is crucial as a parent to ensure that they channel their knowledge in the right direction.

Making ensuring that kids focus their knowledge in the appropriate direction as a parent is crucial.

So let's examine the next measures in this regard!

First: budgeting

Children need to learn how to save and divide their spending plans carefully, so while you may think that teaching them how to earn would be the first step, this is not the case. Since budgeting is one of the most crucial components of financial management, you must first teach them how to do it. We are all aware that poor or nonexistent budgeting causes money issues.

Second: Financial accountability

It's crucial to keep track of your expenditures if you want to manage your money well. This includes understanding how much money is accessible, how much money has been spent, and how much money has to be saved for future needs. The idea of being responsible for managing money by keeping accurate records must be introduced to elementary-aged children during this time.

Third: Getting Paid

This can be done by giving them easy jobs or errands to complete in exchange for payment. They will learn more about how to earn money with this exercise. 

Fourth: Savings

Financial management and financial literacy both heavily rely on saving. We cannot emphasise enough how crucial saving is to safeguarding our financial future. We must therefore impart this lesson to our kids. Teach children to set aside some of their money for savings while creating a budget.

To earn interest on their funds, you may even serve as their bank. They can learn about bank savings accounts in this way.

Fifth: Making an investment

Financial management is a process that includes investing, budgeting, and saving. We need to make investments if we desire a stable financial future. Though they are unable to invest physically, you can make arrangements at home for them to do so in order to provide them a fundamental understanding of how it functions.

Sixth: Budgeting Your Money(Making Smart Purchases/Spending Wisely)

It is essentially the last financial literacy lesson we should impart to your kids.

Possibly because they already have a vague understanding of how to use the funds or how it functions. The last step in educating your children about money management at home is to show them how to spend money sensibly and the consequences of being careless with money.