- 1). Expose your preschooler to money. Let him see you creating a shopping list and deciding what to buy. Demonstrate how coupons save money and show the ways in which you set spending limits for yourself. Let him watch as you withdraw money from the ATM and explain where the money comes from. Teach the denominations of money through exposure to different coins and notes. Play "Money Memory" to reinforce the concept: Your preschooler must match the cards containing pictures of coins with the corresponding numeric values.
- 2). Provide an allowance to reinforce the concept that money is finite -- once spent, it's gone. Give your preschooler a dollar and allow her to spend it if she chooses. Once the money has been spent, make her wait until the following week before she can purchase anything else.
- 3). Use a piggy bank to encourage saving. Alternatively, save for a goal by creating a savings chart to track your preschooler's progress toward a predetermined goal. Cut out a picture of the toy your child is saving for, and paste it to card stock. Then draw boxes for each quarter your child needs to save to reach the goal. As your child saves each quarter, allow him to put a sticker in the box until all the boxes are filled. Then take him to the store and allow him to pay for the toy himself with the money he saved.
- 4). Set up your child's first bank account and involve your preschooler in the process. Make deposits and talk about the concept of interest. At regular intervals, allow your child to withdraw the interest earned on her money.
- 5). Teach your child how money is earned. Let him visit your workplace to see where you go to make money. Offer your preschooler the opportunity to earn money himself by completing specific tasks -- such as folding a basket of laundry -- but also teach him that everyone is responsible for doing some household chores without pay, by following a regular chore list. Age-appropriate chores for preschoolers include cleaning his room and helping to unload the dishwasher.
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