Teaching Kids About Money

Teaching Kids About Money

Are you ready to test your knowledge about kids and money? This ten-question multiple-choice quiz will explore some fundamentals regarding teaching your kid about money and banking. After completing all ten questions, click "What's my grade?" at the end of the quiz to see how you did.

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What should your pre-schooler know about money?
When teaching your preschooler about money, it is essential to understand what it is, how it works, and its value. Then you can educate your preschooler about things that cost nothing, like playing with their friends at home, going to local parks, or playing in the backyard. Then you can contrast that with things that do cost money, like food, clothing, toys, and even gas that helps cars take them places. Once that is understood, you can focus on small spending decisions so they can understand the potential consequences of making poor spending decisions.

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Which of the following is NOT a recommended financial skill for a grade schooler?
Grade school age children should understand basic concepts of money. Those include what it is and how to count it; understanding how it is acquired and earned; and how much things they want cost. While understanding the basic concepts of borrowing money is helpful, it is a bit advanced for that age group.

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At what school level should you offer an allowance to your child?
Elementary school would be the best time to start offering an allowance to your child to learn money management skills. With this limited allowance, you can help your child establish a spending plan so that they can accomplish specific goals on their own. Essential concepts to teach for money management includes: need vs. want, how to save money on their purchases in the form of coupons, sale shopping, or applying rebates, and also giving them opportunities to practice by letting them create budgets, small spending decisions, etc.

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What does an allowance teach your child?
The ultimate goal of an allowance is to teach your child how to manage their money. Teachings would include the natural responsibilities that come with money, as well as saving and investing. By learning these skills early on in life, it will be easier to use their money management skills later.

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What foundation should you use when teaching your child to count money?
The most practical foundation you can teach your child when learning how to count money is that all U.S. money has the dollar as its unit of value. Understanding the dollar will help understand the various units of money and how they can add up to equal a dollar.

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What is skip-counting?
Skip-counting is where you count by multiples of 5s, 10s, or 20s to count faster. It is the simplest way to teach your child to count bills and coins of most U.S. denominations. You can practice skip-counting until your child can calculate coin values up to one dollar and then practice with paper money.

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Which is an example of a counting game?
Counting games will help your child make learning how to count money fun. There are many different counting games, including the hundreds chart, the matching game, and the partner match game. The hundreds chart is a chart with 100 squares labeled from 1 through 100 in which you give your child different coins and tell them to place them on each square representing the total value. The matching game essentially focuses on matching physical denominations with written values. The partner match game focuses on baggies of coins with different values that can add to the same total value. The challenge involves finding your partner with the same total value.

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What is a good habit to develop when introducing your child to banking?
The most critical skill that can develop early on is how to save money. Savings can incorporate various areas for money management, including how to budget, how to reach a goal, or how to track expenses. Learning how to save efficiently early on will help develop the skill later in life and give a head start with earning interest.

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What banking requirements should you try to avoid for your child's bank account?
One of the peskiest banking requirements to meet as a child is meeting any balance requirements. Banks with balance requirements typically will inflict a fee if the balance is insufficient, which can quickly snowball.

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Incorrect. You answered "". But the correct answer is "". Please make sure and read the information at the bottom to better understand the answer.

What is the importance of a savings account?
Opening a savings account can teach your child the importance of interest, establishing a savings goal, and various savings techniques. Children can see the results of having a savings account at an early age, which will help keep them on track later when growing other savings accounts for retirement.

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