Applying Math to Teach Kids How to Handle Money
One of the most valuable aspects of math is that we use it to build, check, prepare, and use our money. Math education that centers on money are an indispensable element of well-rounded learning. Sadly, several academies scarcely cover this and instead go for rote problem solving that doesn’t bring the real world into it. Thankfully, you can show your kids to use math to handle their money from a tender age.
You can explain these concepts to all ages by showing them what they want to know using the style they follow. For example, to someone in primary school, you can tell that a bank holds the money safe as a piggy bank makes at home. More difficult theories can be explained after your child has learned addition, subtraction, and primary multiplication.
* Grades K–2 – One thing you can teach children at this age is about delayed gratification and opportunity cost. Before studying compound interest, this is an important idea to understand, which may be a few years away. But for now, you can show your child how to keep their gratification to experience it more later when it gets to other phases of their life.
* Primary School – At this age, it’s time to start allotting chores and an allowance. When you provide a budget, it’s necessary not just to tell your child they can use it as they fancy; instead, teach them how to plan, save, and budget their money using their math abilities. For example, if they desire to buy a bike and need to give $30, how long will it get them to save for it?
* Middle School – Now that your kid is in middle school, they likely have more expenses than previously. It’s a good approach at this age to start giving them more authority over their resources and what they pay. If you regularly spend two dollars every day on their lunch, for example, you can provide them all the money in their allowance and allow them a budget that, or add to it with an odd job or other funds if they want more.
* High School – At this time, it’s good to set up your child with a checking and savings account of their own if they don’t already have one. Most kids will own a savings account by this age; if they don’t have a checking account, it’s time to start one with some savings. Then they can determine how to handle the money and balance the budget. At this time, your child can decide to use some of their savings to open an account of some kind so they can watch how to aggregate interest works.
* College – Give your child an allowance and assist them in setting up a budget as you did before. Usually, kids who were shown to budgeting beforehand will do this automatically once they begin college. The funding will support your child in completing college with fewer debt by following what they need.
A great place to determine financials and use math to handle finance is the Consumer Finance Office of the US Government. They have some excellent education for all ages about managing and using money and math to handle money.