Teaching Kids to Budget, Through Nature

Knowing what you know now, don’t you wish you understood about the importance of budgeting and money management when you were a child? Think of all the dough that passed through your small hands in those early years. It came in as an allowance, a reward for good grades, a gift on a special occasion, or from your own enterprise such as a paper route or neighborhood lawn mowing business. If only we had tucked a portion of it away to earn compounding interest. But alas, most of it went to the toymakers, confectioners, and chocolatiers of the world.

To be fair, adolescent money management wasn’t really on the minds of parents and educators back then, but times have changed. Society has come to realize that to build a better world we need to empower the next generations with the knowledge and skills that will serve them tomorrow. Teaching kids to budget is a crucial part of this, because it builds self-sufficiency and fosters healthy financial habits. Early budgeting education helps them understand the value of money, differentiate needs from wants, and gain confidence in making financial decisions that lead to greater financial wellbeing as adults. Such lessons are of particular importance not just for their future financial wellbeing, but their mental health as well. Population surveys confirm that of those who say money has a negative impact on their mental health, nearly 50% indicate that being in debt is the top issue. Further, the same body of research indicates that a number of mental and behavioral health issues are linked to poor money management, including ADHD, anxiety, chronic stress, depression, all of which are conditions that tens-of-thousands of Canadian adolescents struggle with into their adulthood. Parents who suspect or know that their child may be among those who live with one or more of these conditions do their child a great service by educating them on the concept of budgeting.

Understanding all of the above, you are ready to provide your child with a lucrative leg-up on their future. But how are you to get them to “buy in” to budgeting, much less get them excited about it? Through the wonder of nature of course! While money doesn’t grow on trees, Mother Nature’s bounty offers lessons that may turn your child into a future mogul. Please keep reading.

Two Activities in Nature That Teach Children About Budgeting Their Money for Future Wellbeing

I. Start a Seed Preservation Project

There may be no better way to use nature to teach children about budgeting than starting and maintaining a seed preservation project at home. Seed preservation involves collecting, drying, and storing seeds (for plants/crops that your household is interested in) to ensure their viability for future planting in your backyard garden. If you don’t have a large enough yard, follow these tips for what you can grow indoors. The seed preservation process is crucial for maintaining genetic diversity, ensuring food security, and conserving plant species over time, all of which are concepts that connect to money management in some shape and form.

Seed preservation teaches kids about budgeting through principles like saving, delayed gratification, resource allocation, and long-term planning and foresight. Just as saving seeds from the healthiest plants ensures a future harvest, saving money from allowance (etc.) provides funds for future purchases, investments (yes, kids can invest too!) and other goals that your child may have. It requires your child to make decisions today that create a valuable return or resource for their future.

Where to get started? Our Foundation has created easy-to-follow educational guides for how to make seed preservation even more FUN than it already is:

II. Nature Scavenger Hunt for Play Money

Put together a scavenger hunt in a natural environment. Great environments for this project include a forest trail and/or local beach where there is a diverse collection of interesting things that can be gathered from the ground. Examples of these interesting things include acorns, helicopter seeds, smooth and rounded rocks/pebbles, different types of pinecones and leaves, feathers from varying species of birds, seashells, sea-glass, driftwood, and so forth. Once you have identified items that the earth and sea has naturally discarded, assign monetary value to each species and type based upon rarity. A more common item (i.e. maple leaf) would be assigned a low monetary value (i.e. nickel) while a rare item (Eastern White Pine pinecone) would be assigned a higher monetary value (i.e. toonie). By seeking out and collecting these items, children earn play money that they can save-up over time and to turn in to you for near-and-far future rewards. Have your child choose between spending their play money on immediate rewards such as a special snack or extra screen time, or saving it for a larger goal, like a special toy, an activity (trip to a local amusement park), or actual money. This introduces the concept of saving for future wants and needs. This concept works even better when a child has a sibling, as one is generally more likely to save their play money than the other. The who does not save, will learn the feeling of regret in spending immediately for a smaller and less-satisfying reward.

Overall, this engaging activity demonstrates the relationship between work and earning, earning and spending, and saving. It teaches children all about setting financial goals and making smart choices about how to use earned money.

Teach Kids to Budget Through Nature

We hope everything above was helpful. Meanwhile, please note that the Plant a Seed & See What Grows Foundation inspires and promotes healthy living and learning for kids across Canada. You can help us help the next generation by pledging your support too! View more on how you can get involved.