Achieving financial literacy in the United States has always been challenging. Almost without exception, financial education is virtually nonexistent in the school system, and teaching kids how to have better relationships with money is generally left up to parents and grandparents. If you are a parent, you may feel overwhelmed by the task; if you are a grandparent, you have a unique opportunity to embed real-life instructions.

Children are naturally curious and eager to please the adults in their lives. With a little experimentation and practice, teaching important money lessons can be fun and rewarding.

What grandparent doesn’t want to give their grandchildren a head start in life? Teaching them about money is one way to do just that. Of course, you don’t want to bore them with a lecture on compound interest or the stock market. But there are plenty of fun ways to teach kids about money.

Here are a few ideas which might seem far too simple but in reality, at your grandchildren’s level, they make sense and they can be fun.

1. Play store. This is a great way to teach kids about counting money and making change. Set up a pretend store using items from around the house and let them be the customers and clerks. They’ll have a blast while learning important math skills.

2. Have a lemonade stand. This is a classic way for kids to earn a little spending money. Plus, they’ll learn about running a business and dealing with customers.

3. Go on a “shopping trip.” Take your grandchildren to the store and let them help you pick out items. They’ll learn about budgeting and making choices as they try to stay under your predetermined spending limit.

4. Play games. There are lots of great board games and apps that can teach kids about money. Monopoly, The Game of Life and Payday are all classics. For something a little different, try the Stock Market Game app.

5. Talk about money. As you go about your day-to-day life, point out opportunities to talk about money. For example, when you’re at the grocery store, explain how coupons can save you money. When you get a bill in the mail, show them how you write a check and send it off.

With a little creativity, you can teach your grandchildren about money and have a lot of fun in the process!

Teach kids how to SAVE

Help your grandchildren understand what money is. Many children believe that money grows on trees or that the ATM is a bottomless well of cash. While it may be difficult, it’s important to try and explain to kids the value of a dollar in simple terms. You could start by talking about how people work to earn money and rewrite this paragraph with different phrasing.

Teach your grandkids about needs vs. wants. One of the most difficult money concepts for children (and adults) to understand is that we can’t always have what we want. We must be able to distinguish between our needs and our wants and, oftentimes, settle for just meeting our needs.

A simple way to help kids understand this is by using the “3 Jar System.” Label one jar “spend,” one “save” and one “give.” As you receive money, put a percentage into each jar. For example, you may decide to spend 10%, save 70%, and give 20%. This is a great way to help kids start thinking about their future and the importance of giving back.

Lead by example. As a grandparent, you’re one of the most influential people in your grandchildren’s lives. It’s never too early or too late to have the money conversation with the children you love. Doing so will have a lifelong positive impact and foster a healthy, productive relationship with money that will pay off again and again.

Lyle Boss, a native Utahn, is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.

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