5 Ways To Teach Your Preschooler About Money On Your Next Shopping Trip

Our preschoolers are surrounded by invaluable learning experiences every time they accompany us to the grocery store. Taking advantage of these built-in learning opportunities will allow children to become comfortable around money and financial habits that will serve them in the long run. Every trip to the store is an opportunity to teach your child financial literacy. Check out this list of things to do with your preschooler the next time you visit the store:

Make a List

One of the most important parts of visiting the store is making a list that lays out everything you need. A list helps organize our trip and ensures that we only purchase the things we planned for. Sitting down with your preschooler and making a shopping list can teach them about the self-control and organization needed to apply the practice of budgeting. This will help your child see the importance of keeping track of what is being purchased and if it is really necessary. A list can help your child learn the basics of budgeting. Help them make a list that covers everything you need while staying under your expected expenditure. They will learn quickly how important it is to stay focused when planning. 

Keep track of the Budget

When you get to the store, help your preschooler keep track of the budget. Help them do the math, but make sure they are doing their best to make sure that the cost of the items in the cart does not exceed the overall budget. It can be helpful to have them cross off items on the list as you shop. Try to add something that is not on the list into the cart and see if they stop you. Be sure to explain to your preschooler that a budget can help you plan your monthly finances and make sure that you are not overspending on food items you do not need. After a few trips, your preschooler will be helping you stay on track by letting you know when certain items are not in your budget. 

Compare two similar items

One of the most important skills in everyday personal finance is the ability to make decisions when faced with two similar products. Every day we are faced with choices between brands, quantities, and qualities. Including your child in these conversations can be beneficial in their ability to identify when and where it is okay to choose the less expensive option. When looking at two similar items, be sure to take everything into account. Have your preschooler look at the price as well as the size or quantity of the product. Show them when the more expensive option is required and when it is okay to choose an off-brand. Making these differentiations early will allow your child to build habits that can stretch their dollar in the future. Not only can this help with budgeting, but it may teach your child the true value of the object when weighed against the price of name brands. 

Divide the Cart into Needs and Wants

One of the best ways to practice budgeting is to determine which items are things you absolutely need and which items you just want. This differentiation is important in the future because it teaches kids where they can save if money ever becomes tight. You can divide your cart into needs and wants when at the store. Start your shopping trip by picking up all of the things you need first. Milk, eggs, bread, and all of the essentials can come out of the budget first. That makes it easier to divide the remainder of the budget between things that are wants like snacks or sweets. Separating these items in your cart makes it easy for your child to see which items belong in which category. Your preschooler will begin to learn how to prioritize spending on the most important items first. When your child can see the process of budgeting, they may be even more grateful when they are allowed an additional treat because they understand that it is not something that is always guaranteed within the budget. 

Pay the bill

After you have completed your shopping, checked everything off the list, and filled your carts with needs and a few wants it is time to pay the bill. Paying the bill is an amazing learning experience for your preschooler. Your preschooler will receive hands-on experience handling money and gathering the proper bills to pay the tab. Not only does it teach your child how to cover the cost with the bills in hand, but it shows them that you trust them to do so. When we show our children that we trust them to handle money, they will build their financial confidence with every transaction. 

A lack of confidence is the source of many adults' issues with personal finance. When we allow our preschoolers to count out the money to pay the cashier, they are allowed to grow their confidence in a safe and supported space. This experience will help them feel confident and capable around money for the rest of their lives. The more experience that your preschooler has with money and personal finance, the better equipped they will be in a world where personal finance is key. So, the next time you take your preschooler to the grocery store, let them pay the bill. 

Learn Financial Literacy Step by Step

These practices are only useful if they are used continuously. Your preschooler will struggle at first, but over time they will be able to contribute to the financial responsibility needed for a successful trip to the grocery store. Being transparent with your child about money is always a great way to teach them the reality of money and personal finance. Do your best to include them in the process so that they can begin building valuable money habits as soon as possible.