Acquaintances

 Right now, your child understands that money is used for buying things and has some foundational knowledge about spending and saving. This page will guide you in teaching them to manage their money more actively and responsibly. 

• Understanding:  Your child knows that money is used for purchases and understands the basics of saving and spending. 
• Interaction:  They may have some experience with managing small amounts of money, such as allowance or gift money. 

Budgeting:  Start tracking simple income and expenses. 

• Task: Help your child create a basic budget to track their allowance or gift money. Use a notebook to list their income and spending. 

Saving:  Begin setting aside money for specific goals. 

• Task: Encourage your child to set a savings goal, such as buying a toy or saving for a special event. Help them track their progress and celebrate when they reach their goal. 

Debt:  Understand the importance of managing borrowed money responsibly. 

• Task:  Explain that borrowing money means it must be paid back, often with interest. Use simple examples like borrowing from their piggy bank and paying it back with a small fee. 

Credit: Learn that good management of borrowed money builds trust, similar to building credit. 

• Task:  Discuss how responsible borrowing and repayment build trust, just like how adults build credit. Use age-appropriate language and examples. 

Savings Chart: Create a visual savings chart for their goals.

• Task: Make a fun, colorful chart to track their savings progress. Each time they add money to their savings, they can color in a section of the chart.

Money Jars: Use different jars for spending, saving, and giving.

• Task: Label three jars as "Spend," "Save," and "Give." Encourage your child to divide their allowance or gift money among these jars to learn about balancing their financial decisions.