How to Introduce Financial Literacy to Grandchildren

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Here’s a recent conversation my granddaughter and partner shared on a trip to the grocery store:

Ziva: Grandpa, I’d like to buy a cupcake.

Grandpa: how much money do you have?

Ziva: (counting) a dollar.

Grandpa: the cupcake costs $1.25. How will you pay for the remaining 25 cents?

Ziva: You’ll give me your wallet.

While my partner and I laughed, inwardly, we also exchanged a knowing glance that this just isn’t something a 6 year old should be expecting or relying when it comes to earning, saving, or investing money. Something had to change.

The question was how?

We already practiced an allowance system based around chores, behavior, cooperation, and similar deeds, but there needed to be something else. Something more positive that wasn’t based just on personality and behavior. As part-time guardians for my granddaughter, we also participate in homeschooling activities with her. We explored library services and homeschool supply stores, but didn’t find anything that fit the vision of what we were looking for. This was clearly a case of “we didn’t know what we didn’t know.”

Thankfully, my online activity and membership in FinCon, the financial blogger’s resource for ideas and support, led me down a fascinating path to financial literacy. I ended up meeting Paul Vasey, founder and developer of Cash Crunch Games. Through our discussions and on his website, he shares,

“A lot of people see money as math and are intimidated or just plain not interested. It is more fun to spend and not worry about the consequences. Money is easily available through various channels, but it is important to respect your money and how it is used. Through these games and other resources, our aim is for the user to recognize that there are choices when it comes to handling money. We simply want to raise awareness for those choices. i.e. being smart, foolish or even wasteful. You can only spend a dollar once! Through play and various resources, we try to allay those fears and turn negatives into positives. Play our games and make the mistakes in a virtual world where the games can be restarted and the environment is fun and non-intimidating.”

After hearing this and viewing the videos on the Cash Crunch website, I knew we stumbled upon a winner. Likewise, financial education is making the news and programs are being developed to teach financial literacy in schools and elsewhere. Cash Crunch was the opportunity for us to teach our granddaughter in a way that went beyond a basic allowance. We immediately purchased the game and were ready to play!

Experiences during play

When allowing a child to open a gift of any type, be prepared for immediate curiosity! While Ziva rushed to get to learn and play, my mother struggled to keep up with a 6 year old’s pace. There was a simultaneous atmosphere of excitement and anxiety.

Thankfully, my calm held things together 😉 Mom read the instructions while Ziva excitedly set up the game board, separated card stacks, decided who got which color, and so forth.

It took a few attempts to divvy out how much money each player got (due to eager hands and a curious cat) but we were soon off to earn, save, and spend.

Four sets of cards guide the game play: Income, Expenses, Activity, and Oh Boy! Each card introduced interesting scenarios. Here’s an example of each:

Oh Boy! You are thirsty! Soda costs $1 OR water is free. If you choose soda, pay $1 to Debbie Debt.

Activity: What is the least number of coins and bills you need to make $1.49?

Income: Your pets are grateful you feed them for the entire week. Receive $3 on their behalf.

Expense: You were caught lying. No allowance for the week. Pay back $2 immediately to Debbie Debt.

My granddaughter received this card, which terribly upset her. “I don’t lie! I don’t want to pay this!” she tearfully insisted. This and many cards within each pile inspired discussion which Ziva initiated herself.

From a grandparent (and parent) point of view, some of the Income cards were perfect for introducing earning opportunities at home that went beyond behavior and “the weekly allowance” (you can find more ideas on the Cash Crunch game website).

When my mother was ready to take a break, I suggested one more round. Ziva asked how we win. When I stated, “the winner is the one with the most savings,” Ziva peeked at our Sammy Saver stack to check our “stash” as she called it. Every time a player finished their turn, she counted to ensure she was ahead.

Our first game only got us 3 rounds since most of the suggested 30 minutes was spent reading the rules, setting up the game, having Ziva pass out the money, and the cat batting around the playing pieces. It was a bit humorous for me and Ziva while it was stress-inducing for my mother. Overall, very fun all around.

Suggestions for future play

• Parents should familiarize themselves with the game beforehand. Read the instructions. Play a few rounds. Learn the details of the game. The Cash Crunch website also offers play variations. The more you know ahead of time, the smoother play with go.
• Laminate the cards! It makes the process of handing out money easier for eager hands.
• Have real coins on hand to help identify the play money with real money.
• Establish how many minutes or full rounds of the game you will play as you begin to play. Use this as an added educational moment: allow the child to keep track of minutes or rounds.
• Patience! Let your child or grandchild read the cards. At the early ages of 5, 6, and 7, the child is learning to read and will WANT to read, count, deliver money, and so forth. We let Ziva read every card, which of course, limited how many rounds we could play.
• Make sure the cats are elsewhere. They enjoyed being the center of attention and our game was of great interest to the cat, too.

What I liked about the game

This is something that brings family together without screen time or electronic devices, which I find highly attractive as a grandparent. It can be played in the time it takes to cook a favorite dinner or as a pre-bedtime activity (alternate with a bedtime story).

For the grandparent audience, the top interest is teaching our grandchildren (and children) about money skills. This can also be a subtle way to slip in some financial literacy tips to our adult children.

The activities played within the game can also be tied in with so many aspects of daily life such as school, chores, family shopping, entertainment, and other outings. So the next time Ziva (or your own grandchild) asks for grandpa’s wallet, we’ll be better prepared!

Kristen Edens