(NC)-Young children are fascinated by money. What can I get with this nickel? What's a loonie? Teaching your children the value of money is part of your job as a parent, but knowing where to start can be intimidating.
"Financial literacy is an essential life skill that children need to learn to be successful adults," says Raymond Chun, a senior vice president at TD Canada Trust. "It is never too early for your kids to start learning the value of a dollar."
Chun offers his advice on how to teach young children the value of a loonie:
• What is it? Start by introducing your children to all the coins, including their names, colors and values. Once they master the basics, you can help your child understand the monetary system and practice their math by counting out how many pennies or dimes are in a loonie.
• What can you buy for it? Set up a play grocery store with their toys or take your child to the store to show them what they can buy with one, five and 10 loonies to give them a visual understanding of its value. Depending on their age, you could also use this as an opportunity to explain how a bag of rice can feed a small family for a week, yet it costs the same as a bag of candy.
• How do you get more Loonies? It's important children learn from a young age that money comes from hard work and saving. Consider linking their allowance to age-appropriate chores, like making their bed or putting away their toys, and help them choose a treat that they can start saving for.