Practical Financial Realities for the Youngest Savers
Amoney mindset is the way we think about money, drives how we act with money, and ultimately determines our financial success or stress. It makes sense then, that it (literally) pays to keep your money mindset in tip-top condition!
A Framework for Success
When it comes to harnessing the power of the mind to create healthy money beliefs, Carol Dweck’s concept of ‘The Growth Mindset’ and Stephen Covey’s idea of ‘The Abundance Mentality’ provide a useful framework. These two particular holistic approaches boil down into two primary beliefs. Firstly, that there are enough resources (including money) and successes for everybody, and secondly, that everything we need and want is available to us through effort, determination, work, kindness and gratitude for what we already have.
Financial habits and money mindset are largely influenced by the people around us. We can help children cultivate a healthy attitude toward money through pertinent learning experiences and exploration. Take a look at the following suggestions and get ready to empower yourself and the children in your life with a positive money mindset!
1. Create a ‘My Healthy, Wealthy Life’ Vision Board
The purpose of this activity is for each child to discover and express what wealth means to them. Gather a poster sized piece of paper, glue, scissors, coloured pencils, markers and a stack of old magazines. Ask the children to notice what feelings come up when they hear the word ‘wealth.’
Discuss how they feel when they are having fun with their friends, achieving goals, making their savings grow, enjoying cuddles with their pet, laughing with family, going on holiday, eating ice cream, reading a good book, improving school work, doing a favourite sport or hobby or showing kindness to an animal or a person who is feeling sad?
Get busy cutting out pictures of things that represent these feelings and glue them to the board. Add drawings, sparkle or words to complete a personal vision board to embody ‘wealth.’
Stimulate thought with questions and prompts such as:
• What makes you feel happy?
• What is your superpower?
• Does wealth mean lots of expensive toys, or is it really the experience of playing that you like?
• What makes you feel powerful inside?
• How can we help others who have less than us?
At the end of this exercise children should be aware that a wealthy, healthy life is about cultivating these feelings as well as having enough money to buy what we need and want.
2. From Little Things, Big Things Grow: Understanding Compound Interest
Uncomplicate the concept of compound interest with this visual 60-day, 3-step project. This exercise also provides an opportunity to discuss the rewards of saving, starting early and with small
amounts.
a. Label a clear jar or container with the word ‘Investment.’
b. Use play money, marbles or rocks as coins and place 10 in the container.
c. Explain that the investment will earn 10% interest which means that for every 10 coins in the investment, one coin will be added to the jar. Each day, tally the coins in the investment and add 1 ‘coin’ for each 10 coins.
The first days of this exercise won’t deliver much impact. But by day 16, the magic of compound interest will start to show!
• Run a competition to see who guesses closest to how many coins will be in the investment at the end of 60 days.
• Continue past the 60 days and see how the money in the investment grows even quicker.
3. Design Your own Gratitude Ritual
The positive benefits of practicing gratitude are well documented. Studies show that when we pay attention to the good things in our lives, the more goodness we will notice and therefore cultivate. We can teach children about the ripple effect of their thoughts and explain that each of us possess the choice to focus on things that make us feel angry and sad or calm and happy.
Encourage children to firstly NOTICE, then NAME and finally express WHY they are grateful for a particular thing. For example, a child may say, “I am grateful for my dog because we love each other. We have fun together by cuddling and she is soft and warm.”
Strengthen this simple gratitude practice by encouraging them to write down their observations (perhaps in a journal) or say them out loud in the present moment.
4. Play With the Power of Posture and Feel Brave and Confident From the Inside
Put on some fun, loud music and get the kids to dance around. After a few moments, stop the music and shout, “POWER POSTURE!” followed by the these power-posture cues:
• Squeeze shoulder blades together
• Suck in your belly
• Lift up your rib-cage
• Tilt your pelvis forward
• Relax your knees
• Lift your chin
• Smile
Remind them to breathe easy, turn the music back on and enjoy a few more rounds of ‘Power-posture play.’ Ask the children how the power-posture play game made them feel. How could they use this in the future? Compare the costs of power dressing to the savings of power ‘posturing.’
The Mind is Worth a Fortune
Understanding the mind and practicing this way of thinking, feeling and doing can help equip children with a healthy money mindset. From there, it’s possible to create an amazing and abundant life. Now that’s worth a million dollars!
