Summer Vacation Tips to Teach Kids About Money

Summer vacation is here! While your kids will be spending most of it at summer camp and or enjoying a well-deserved break from schoolwork, it’s also an opportunity to teach them about budgeting. Financial literacy is one building block of life that we often overlook for children. It’s never too early to encourage entrepreneurship or teach a child the art of budgeting. We’re sharing our top tips and tricks about how to teach your kids about money this summer.

1. Teach financial literacy
Kids don’t understand the concept of money and its value because they’re rarely told about it. Only 52% of parents talk to their children about money issues – usually to shield them from the negative side of finances. You can bring up financial literacy and budgeting into everyday conversations. Make a grocery list and set a budget and let your kids help you shop and stick to the budget. Tell them why it’s important to turn off the lights when they leave a room or explain how an ATM works. These little things will make them more aware and conscious of how money works.

2. Allowance
If your kids aren’t already earning an allowance, then summer is the perfect time to start. You can get them into a routine of doing chores to earn allowance around the house during the summer. It helps to form positive habits and is a win-win for both you and your kid. You can decide how much you’re comfortable giving your child, but it should be enough to incentivize them to work. Think of how much it costs for a toy or a game.

3. Give them a savings goal
Earning allowance money is only one-half of the budgeting lesson. While giving your kid allowance is a great reward for helping around the house, it’s also an opportunity to teach your kid about savings. You can sit them down at the start of the summer and set a savings goal. It might be to put money towards a specific event – like a vacation to pay for souvenirs – or it may be to buy a new Xbox game or doll. You want to make sure you’re giving them allowance to save part of it to meet their goal while still having enough to buy the occasional treat.

4. Teach entrepreneurship
As your kid gets older, it’s easier for them to put on an entrepreneurial hat and think of ways to make extra money during the summer. Depending on their age, they might not be able to start a business. If they’re too young, there is still plenty of opportunities to teach them about entrepreneurship. Ask your kid if there is something they enjoy doing that could earn them extra cash over the summer. It might be offering a dog walking service, babysitting neighborhood kids, or gardening for people on your street. Your kid gets an opportunity to make extra money outside of their pocket money while learning the value of hard work.

Which of these tips will you be using to teach your kids about budgeting and entrepreneurship this summer?
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