- 15 Mar, 2024
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- 3 Mins Read
Planting the Seeds of Financial Literacy: Engaging Activities for Ages 11 to 13
Tween kids like to be treated as young adults and it is the same case in financial matters too. Encouraging children to participate in financial decision-making at home makes them independent and empowered.
Money Basics for 11 to 13-year-old kids
Make Your Move - Open a Savings Account
Opening a savings bank account for your kid (with a parent as guardian) encourages them to take responsibility for their finances. This ensures adult guidance while allowing the children to participate in managing their money. Kids can make deposits and withdrawals with parental supervision and also set savings goals. Teaching children the importance of saving for unexpected expenses helps them maintain a buffer for emergencies.
Family Finance Fun
When shopping for clothes or school supplies, involve kids by discussing needs versus wants and setting a budget limit. Guide them in comparing prices and making informed choices within the budget. This helps children understand that money is a finite resource and has to be used wisely.
When planning a vacation, parents can give kids a budget and ask them to research the various costs involved and help with the decision-making. Explain the planning process and involve them in brainstorming ideas for saving or finding ways to cut back on expenses.
Spend or Borrow? Demystifying Debit Card vs. Credit Card
Children must be taught the difference between debit and credit cards and how they can be beneficial for financial management. A debit card is a tool that helps you use your money electronically and there is no borrowing involved. We can only spend what is there in your account. But a credit card is like a short-term loan. We will receive a bill each month and we have to pay back the money we have spent or pay interest. Credit cards can be tricky because it’s easy to spend more than we have and get stuck with a big bill later.
Delayed Gratification – The Power of Patience
“Good things come to those who wait!” – Delayed gratification is about choosing a bigger, better reward later instead of taking a smaller, quicker reward now. Kids learn to resist those impulsive buys and save up for something they truly desire. There has to be balance while we demonstrate delayed gratification as it doesn’t mean depriving them of everything fun and small. It takes time and patience for kids to get to this but it will be a starting point for them to avoid impulse buys.
The Interest Race - Simple vs Compound
It is truly exciting for kids to understand that their money in the bank will earn them some simple interest. With compound interest, their money grows faster because it earns interest on both the original savings and the interest they have already earned. It’s like a snowball rolling downhill, getting bigger and bigger, the longer it rolls. Understanding this difference will help kids realise why it’s super important to start saving and investing early!
Peer pressure – Be You, Be Strong
“Encourage kids to reflect on what is important to them and the kind of person they want to be. This strong foundation helps them resist pressure that goes against their values. Kids must learn to say a confident and polite “No” when needed. Children must understand that their self-esteem and self-worth are based on what they are as a person and not on the brands they use.
Make a Difference - Organise A Fundraiser
Kids can participate in setting up stalls in their community or school to sell their craft items and earn money from it. They can then donate this money to charity. This will help them grow socially responsible and make the world a better place for everyone.
Begin Your Journey Today
At eduSeed, we firmly believe that financial literacy can be an exciting adventure rather than a tedious task! We’re here to help kids unlock the mysteries of money management, budgeting like a boss, saving, smart spending and making informed choices. If you are interested in providing your kids with a fun and enriching experience, take the first step and register with us.
