The first time a kid receives a coin or note is certainly very exciting for them, especially if they receive it for a special occasion. It’s also the perfect time to talk to them about the many things they can do with their money.
Here is a great series of questions that could accompany a child receiving their first amount of money:
“What could you do with the money you have?”
So many options! A lot of children might first jump to “lots of lollies”, but make sure you prompt them to think about other things they could do with their money. Could they split the money they have and buy fewer lollies now, and add the rest of the money to their moneybox or savings account? Could they buy a gift for someone else to share the money?
“What could you do if you saved a bit more?”
This question is sure to get your child dreaming and it’s a good base to stimulate a saving behaviour. Having more money would mean being able to get a ‘better item’. Would the motivation to buy the latest toy, book, or sports equipment help encourage a stronger savings habit?
”Now, what are you actually going to do with your money?”
As my father liked to say, “With great power comes great responsibility” and with money it’s no different. Once your child has thought about all the options, what is their decision? Hopefully through answering the questions they are motivated to start to split the money they receive, a portion to spend now, some money to save and perhaps a little to share.
TIP: If your child chooses to put their money towards saving for a more expensive item, make sure their goal is realistic and that it won’t take too long to reach.
Take a look on The Beanstalk for some fun activities that you can print out to help your children become familiar with different coins.