CHICAGO, IL -- (Marketwire) -- 03/07/13 -- As part of BMO Harris Bank's ongoing commitment to financial literacy and Making Money Make Sense, BMO Harris is providing weekly financial tips. This week's tip offers ways to teach kids ages 5-6 about money.
It's never too early to begin teaching your kids about money. Even kids as young as five and six can grasp basic financial concepts. Kids in this age group notice their parents writing checks, using an ATM or paying for purchases using cash. They may start mimicking this behavior during play and that's a great sign they are ready to begin learning about money."
BMO Harris Bank recommends introducing kids in this age group to three basic money concepts:
What is money? Start with explaining what money is and what coins and dollar bills look like. To avoid overwhelming your kids, you may want to stick with smaller denominations, such as $1, $5 and $10 bills. As they begin recognizing them, you can introduce them to the value of different money amounts.
Tip: Use common household items such as a pack of gum, birthday candles or a toothbrush to illustrate how each item is assigned a different dollar amount.
What is its purpose? After your kids understand what money is, you can begin teaching them how it's used. Explain that when people want to buy things, such as a house, car, food and clothing, they need to use money. At this stage, you may also want to briefly introduce different payment methods, such as cash, check or credit card.
Tip: Take your kids on small shopping trips so they can see how money is used to buy everyday items such as food and household supplies.
Where does it come from? Kids in this age group are ready to learn how money is earned. If your kids ask where you are going, let them know you are going to work and that while there, you are earning money to buy them the things they need and want.
Tip: To reinforce the idea that you earn money at work, consider bringing your kids to your office for a short visit or having your family attend the next company picnic.
Put yourself in a comfortable place and get started with helpful steps.
The Learning Center is brought to you by BMO Harris Bank, WGN, CLTV, WGN AM 1070, Chicago Tribune, RedEye and Hoy.
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.
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