Whether they’ll be managing a farm one day or not, learning how to manage money is an important skill for everyone, and the back-to-school season is a good opportunity to get your kids thinking and learning about finances.

Since some kids may not think going back to school after summer break is all that fun, what about creating some fun ways to teach your kids the ins and outs of money?

Here are a few ways to teach your kids about money:

The “Family Chef”

Assign your kid to be the “family chef” for the day. They get to pick all the meals and help cook them, but they also have to purchase all of the ingredients with an agreed upon budget. This is a fun, interactive way to teach them about budgeting. Sure, you may end up having chicken fingers and fries for dinner, but you’ll also have had a valuable conversation about how the food you eat isn’t free.

The “Odd Jobs Ledger”

Instead of a standard allowance, offer a running list of odd jobs around the house, each one with a different pay amount attached to it. It could be simple things like feeding the cat, folding clothes or putting the dishes away. The bigger the job, the bigger the pay. This can teach your kid the financial value of hard work and will help them see that some jobs may be harder, but they pay more. Use a “ledger” to track which jobs have been done and for what amounts and at the end of the week, issue your worker a paycheck for their work.

The “Big Purchase Countdown”

When your child asks for something big - maybe a video game console, the newest trendy shoes, or a phone - help them figure out how much that big ticket item costs and how many weeks of their allowance or their chores’ pay it will take to cover the total amount. Make sure you factor in things like sales tax so you can start to teach the concept of the final versus advertised price. Use a visual countdown tracker to count down the days until there’s enough money saved to make the purchase.

For those people who are raising kids on a farm, here are a few farm-specific ways you can introduce finances to your children: 

The “Roadside Stand”

Everyone’s seen lemonade stands that pop up in neighborhoods. Kids who grow up on a farm can modify that concept a bit and launch an egg or produce stand. To encourage their entrepreneurial spirit, help them market their product. Post to local social media groups or print flyers to hand out at local shops or events. To help instill the concept of business expenses and business revenue, help your kid figure out what it actually costs to produce those eggs or that specific produce and subtract that amount from their earnings.

The “Livestock Sale”

One of our territory managers gives each of her kids a heifer to raise. The kid gets to decide if they sell the heifer right away or keep it and start building their own cow/calf herd. The parents foot the bill for the feed, but the kids have to do all the work of raising a heifer on their own and deciding which financial path to take. It’s a way to talk about the markets, a breakeven point and profitability.

The “Equipment Decision”

When a piece of equipment breaks down, involve your children in the discussion of whether it makes more financial sense to purchase something new or to repair the equipment. Research the costs of purchasing a new or used piece of equipment versus the repair costs, and figure out how many seasons each option would realistically last. It’s a cost vs. benefit discussion that will be applicable in lots of life situations your child will encounter. 

Everyone, whether they grow up on a farm or not, can benefit from learning about money early and understanding financial terms. Even if they aren’t learning these specific lessons in school, the start of the school year is a great time to begin introducing money concepts in a fun, laid back way.