Teaching Kids Financial Literacy - Toronto Teacher Mom

Teaching Kids Financial Literacy

Friday, January 09, 2015


While I've never really been a big spender, I am definitely guilty of poor spending habits such as buying a coffee every morning or going out to buy lunch instead of making my own at home. And yes, from time to time, I may splurge on something really nice but hey, YOLO, right? As the chief financial officer of the household, I am primarily in charge of paying the monthly bills and keeping our accounts in check but managing the family budget has never been my forté which is why I'm always grateful for money-saving tips. It's one of the reasons why I want to marry Gail Vaz-Oxlade. Anyone who can simplify money matters is always a friend of mine. 

Now that my children are growing up and taking on more responsibilities, I feel it is even more crucial to set a good example for my kids when it comes to money. Each of them have their own bank account and debit card, and whenever they receive a monetary gift from grandma, they are now the ones to deposit the funds themselves. With mommy watching over, of course. We also talk more openly about certain financial matters in the hopes of instilling an importance on saving for the future. 

To help manage the family budget, RateSupermarket.ca offers free, up to date information on the latest personal finance offers, guides, tips and helpful articles. They also want to help moms and dads teach their little ones about spending, saving and personal finance and have shared a few tips to help educate your little ones on financial literacy.

Five tips for teaching your kids about money

  1. Start early. - Start as soon as your children are able to count and make money the topic of regular family discussions. And make it fun! Play a round of Monopoly or The Game of Life to teach the importance of making smart money decisions. Monopoly can help children learn the importance of budgeting and setting aside an emergency fund. The Game of Life demonstrates how focusing on education can increase earning potential. 
  2. Want vs. need. - Don’t give children everything they ask for and don’t feel guilty about it. I know this is a tough one but it’s important that children understand the difference between needs and wants, and that they may have to wait to buy what they want. This will help encourage them to make sensible spending decisions.
  3. Teach your child to save regularly and plan purchases. - Set up a process for saving money, whether in a piggy bank for young children or a bank account if they’re older. Regularly monitor to see how much they’ve saved and introduce goals for saving and planning larger purchases. You can find out which bank account on the market is best for your child's needs here
  4. Money means choice. - Money is a finite resource, and therefore it is crucial for children to learn how to make wise choices about spending. If your kids are young, during story time read them a book that teaches the basics of budgeting and saving. Remember to chat through lessons-learned at the end. If you have a young adult, test out the Rewards Calculator on RateSupermarket.ca. It's a quick, four-step tool that identifies which available credit card provides the best rewards for your needs (cash back, travel, gas or specialty rewards) based on your current, everyday spending habits. 
  5. Lead by example. - As a parent, you have a great deal of influence on your little ones, especially when it comes to financial habits. Children have a tendency to copy their parents’ behaviour, so be open about your spending habits and savings goals, and try to limit the amount of shopping trips you take as a leisure activity. They might start to think money is unlimited and spending is fun. 
To help you teach your little one about spending, saving and personal finance, RateSupermarket.ca is excited to offer a fun-filled prize pack with educational games & books valued at $75.


The #RSMrewards Financial Literacy Prize Pack includes:
Please complete the form below for a chance to win. Open to Canada only.

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77 COMMENTS

  1. My tip is that I save every dollar given to my son as a gift in a high interest savings account

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  2. I help my son save for something he wants by collecting the money in a jar and writing out on it how much more he needs. He gets to keep adjusting the money on the label until he has enough saved.

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  3. Both my boys have a savings account and they put their tooth fairy money, allowance and birthday money into it. I then go over their month statements that come in the mail with them to show how much they have saved.

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  4. With my granddaughter I put all the spare change into a jar, it's surprising how much their is at the end of the year!!

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  5. the cc thing said that the card I currently use is the best one for me (And I really liked that you could put down how much gas you use etc. ..I might use $20 a month, but thats really stretching it) And I think I've done really well with my daughter ..she is currently in secondary school, has been able to get bursaries but also works two jobs (one is in the field she is studying in) and hasn't touched her student loan money yet (we had a small amount of RESP's for her as well)

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  6. My tip is it never to early to start teaching about money. I learned this when my daughter was 3 and asked for something. I said I don't have money for it and she said you have your card.

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  7. I like the start early tip. I think kids can learn about money when they're young and they'll remember those lessons.

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  8. I like starting young - I wish someone had done that with me1

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  9. I think it is good to have children assist in the shopping, especially in the grocery store learning sales, prices, ingredients...
    jan

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  10. Save a littl bit every week
    Marla

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  11. Budget & stick to it!
    KellyPC

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  12. My kids are learning about coupons, sales, values of things and importance of saving from the time they are born, I think :) Start early!

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  13. My tip is to learn how to set up a budget and try to stick to it; learning to coupon and price match helps. Every dollar saved helps. (Judy Cowan)

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  14. For each birthday as well as at Christmas, we give our grandchildren a present and also some money for their RESP. We hope to teach them that saving for an education is an important goal to have.
    My rafflecopter name is Julie G

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  15. Teach your child to save regularly and plan purchase

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  16. To save money, I only allow so much change in my wallet at any given time. Anything above that, I take out and put in a jar. It is rather amazing at how quickly the jar fills. And that money gets taken to the bank.

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  17. My DD, 5, knows that you don't buy anything unless it's on sale, and even better if it has a coupon. We also have some neighbours who give us their cans and bottles for refund, so she helps with that and we save up the money to do 'special' things together, so she's learning about saving for things she wants.

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  18. I have savings accounts set up for my girls and part of their allowance I give to them and part I transfer into their accounts.

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  19. I know it can be difficult because we want to give our children perhaps what we did not receive as children. Being that this is the electronic age, those items can add up quickly. Don't give in to what the kids' friends have, or how their only-child cousin got 18 presents. Teach the value of a dollar, how far that dollar stretches, and absolutely lead by example. :)

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  20. Coupons are a great way to save on your food bill.

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  21. Make a needs vs wants list and try to eliminate wants.

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  22. I'd recommend the SimplyCash Card from American Express.

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  23. Price matching and coupons is my way of saving money.
    (Debbie W)

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  24. It recommended the Scotia Momentum® VISA Infinite Card
    (Debbie W)

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  25. I'm not sure I would recommend any of them, as the ones they suggested for me wouldn't be a better deal and they undervalued what my current one offers me. I think you really need to figure out which one works for you.

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  26. make a budget and try to stick to it is my advice

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  27. I like to make a budget. I like to know how much money is going where.

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  28. I like the Teach your child to save regularly and plan purchases tip

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  29. It suggested the American Express Gold Rewards Card

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  30. I teach my children to save anyway I can, lots of coupons for sure:)

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  31. We have made a game of feeding the piggy with our 3 year old. He loves to put change into the piggy bank to feed it.

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  32. We price match most of our things and save every cent lol nickel

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  33. RateSupermarket.ca suggested the MBNA Smart Cash MasterCard Credit Card, what a mouthful!! Interesting site!! :)

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  34. I'm awful with money maybe this package will help me too~Caralyn Rubl

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  35. The credit card recommended was SimplyCash™ Preferred Card from American Express® (Judy Cowan)

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  36. American Express Platinum Rewards Card was chosen.

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  37. My eldest grandson who is 8 desperately wanted a computer of his own so did odd jobs all summer, including weeding the garden every day for one hour,and with his birthday money added managed to save enough to purchase one!

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  38. CIBC Aventura® Visa InfiniteTM was my choice

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  39. The credit card recommended was SimplyCash™ Preferred Card from American Express®
    and my tip is that Children should learn early on give them the chance to pay for something and make change in front of you !

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  40. When my boy was really young, and he was given money as gifts etc, he was always good at putting half away (sometimes more), and the other half he would spend on something he wanted, or wanted to do. Hoping my girl will follow, or maybe have a similar plan.

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  41. MBNA Smart Cash MasterCard® Credit Card was chosen for me

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  42. The tip that always stuck on me is pay yourself first. Always save out of all earnings.

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  43. They recommended the RBC Royal Bank® Visa Infinite‡ Avion® card.

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  44. It's important to get your kids to learn how to save money but it's just as important to let them learn how to spend it.

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  45. always a good idea to start the kids off on the right track to working with money successfully

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  46. SimplyCash™ Preferred Card from American Express®

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  47. American Express Platinum Rewards Card over here...

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  48. CIBC Aventura® Visa InfiniteTM

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  49. Let them spend half of any money they get and save the other half.

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  50. MBNA Smart Cash MasterCard® Credit Card

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  51. I show my children how I use coupons and coupon apps to save the most money and teach them how to price match. I teach them how to use credit cards responsibly and they keep all of their birthday money in their own bank accounts

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  52. The card recommended for me was the SimplyCash Preferred Card from American Express.

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  53. Only spend cash. Don't spend what you don't have.

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  54. Mine was the Simply Cash card by American Express.

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  55. If you use a credit card, it's NOT yours until it's paid off! Make certain to pay in full at every statement.

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  56. Walmart Mastercard is a good one as it reward you with cash back.

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  57. I am working on teaching my children the value of money and that it doesn't just grow on trees, or magically appear when they ask for it. They are starting with chore charts with lsmall $ incentives which is slowly helping them understand that we have to earn money in the real world.

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  58. MBNA Smart Cash MasterCard® Credit Card was recommended for me

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  59. I think I need these tips for myself - not just my kiddo! I hope I can teach her to learn from my mistakes.

    My tip would be to learn to put savings away for both long and short term, but to budget realistically for everyday expenses while doing so.

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  60. I was recommended the Scotiabank Gold American Express

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  61. I keep track of how often I use my debit card by automatically transferring $5 for each debit transaction to a savings account.

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  62. I like the need and not want tip. I am a true follower of that one.

    Florence C

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  63. I am entering your giveaway.
    It would be great to win
    the #RSMrewards Financial Literacy Prize Pack.
    In response to your requirement to leave a comment on this post
    sharing my favourite tip or a financial literacy tip of my own.
    Price matching and coupons is my way of saving money.
    I Checked out the Rewards Calculator Tool
    and the credit card i would recommend is the MBNA Smart Cash MasterCard.
    Thank you for having this giveaway!!!!!!!!!!!

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  64. put a little away each payday ..pay yourself as my parents told me. The kids have always put some of their money in the bank account and kept some for fun money or save up for what they wanted.

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  65. the The Canadian Market was recommended for me

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  66. Always give my niece money for her Birthday/Christmas & a small gift to open. Like the feeling that I'm contributing to her future education-Linda

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  67. When the kids get allowance, I make them save half for their banks.

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  68. i teach them to comparison shop to save money

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  69. I was recommended the SimplyCash™ Preferred Card from American Express®

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  70. Mine is teaching your child to save & plan purchases. We've been doing this with our 8 year old. My Mom bought her a little safe to keep her money in, we keep notepad and pen inside and she counts every time she adds to it.

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  71. We like to lead by example as you mentioned Diana. It is difficult in this day and age not to give to your child everything that you never had, like the Easy Bake Oven, just as an example ;) But we must stick to our principles and I feel hubs and I have done that and brought up 3 out of 5 kids who know how to save financially and spend wisely. Not too bad, eh?

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  72. We give them an allowance and then try to teach them about what to do with it.

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