Are you looking for ways to help your toddler understand the value of a dollar? Your toddler is not too young to start learning about money at this age.
Teaching your toddler the value of a dollar may seem like a difficult concept. Many parents think that their children do not need to be taught about money or how to save money at this early of an age. But, your attitude towards money affects your children every day. Whether you know it or not you are making an impression on your toddler and their outlook on valuing money.
I started realizing this when I would take my kids to the store and the entire time we were there they would beg for everything in site. I would always reply with Sorry, but we do not have money for that. Sometimes they would get upset and throw a tantrum, but I knew I could not just give in because it would defeat the lesson I wanted them to learn. Well, they began to question why not and tell me to just use my debit card or get a credit card.
I quickly realized that what I was teaching them was wrong. I did not want them to just learn that we could not afford it, but I needed them to understand that every time we went to a store they were not able to purchase a new toy or candy. I wanted them to know that they would need to wait and save-up to be able to get the items they wanted at the store.
Explaining the difference seemed a little hard for my kids to grasp, so we started with little tasks to get them to understand the value of a dollar.
Ways to Teach your Toddler the Value of a Dollar:
- Start by teaching your children how to pay for items at a store. Including them in this process will help teach your child the concept of giving money for merchandise and how to use money. Even though they may not understand the cost of a purchase it will help your toddler to realize you need to have money to make the purchase.
- Provide an allowance or money for completing chores. This concept will help your toddler to grasp the idea of how to acquire money and the benefits of receiving a reward. Plus, it is a great way to focus on counting and helping them to recognize the difference in each coin.
- Set goals with your child. Ask them what they want to save up for. Try to start with something small so that it does not take a huge amount of time for them to have enough money saved to make the purchase, which leads me to #4.
- Create a saving and spending jar. Kids are visual so this is the perfect way to let them see how much money they have that needs to be saved and how much money they have that they can spend on something they want. Each time they receive money you can have them put a little bit in each jar.
- Include your toddler in financial discussions. For example, if you are planning a family vacation sit down and talk to your children about it. Let them be a part of the discussion so they can understand you are on a budget and that money has a value and impact on the vacation. You will need to be cautious with these discussions because you do not want your children to feel like a money burden or worry about the family's finances. But, make it fun and teach them about what you can afford each year.
I know this is not something your toddler may understand overnight, but starting small can make a huge difference. Teaching your toddler the value of a dollar can impact their outlook on money and create good money habits for their future.
Do you have any tips or fun ideas that you used to help teach your toddler the value of a dollar?
Addi Ganley is a full-time blogger and writer at Frugal Fantic where she offers a fresh perspective on frugal living and provides various options to earn an income from home. She focuses on how to make money both full-time and part-time, and teaches people about money management on a tight budget. Connect with her on Pinterest, Facebook and Twitter.