As a parent, you’re your child’s first and most important teacher—especially when it comes to money. While preschoolers may not be ready for budgeting spreadsheets or bank accounts just yet, they are ready to start learning the basics of financial responsibility in fun and age-appropriate ways.
Here are five simple and engaging ways to introduce your little one to the concept of money:
1. Play “Store” at Home
Set up a pretend store using toys, snacks, or household items. Give your child play money and let them “shop” while you act as the cashier. This helps them understand that money is exchanged for goods and introduces basic math skills like counting and making change.
💡 Tip: Use real coins and dollar bills to make the experience more tangible.
2. Use a Clear Piggy Bank
A transparent piggy bank lets kids see their savings grow. Every time they receive money—from birthdays, chores, or allowances—encourage them to deposit it and watch it accumulate. This visual reinforcement helps build excitement around saving.
🏦 Bonus: When they reach a savings goal, bring them to Midwest Bank to open their very own Kids Savings Account and get a free gift when you open a new account!
3. Talk About Needs vs. Wants
Even preschoolers can grasp the difference between things they need (like food and clothes) and things they want (like toys and treats). Use everyday moments—like grocery shopping or choosing snacks—to spark conversations about making smart choices with money.
🗣️ Example: “We need apples for lunch, but we want cookies. Let’s choose what’s best for today.”
Download our FREE Needs vs. Wants Coloring Sheet
Download now4. Read Money-Themed Books Together
Children’s books are a great way to introduce financial concepts in a relatable and entertaining way. Look for titles like “Bunny Money” by Rosemary Wells or “A Chair for My Mother” by Vera B. Williams. These stories teach lessons about saving, spending, and sharing.
📚 Pro Tip: Ask your local library or bookstore for recommendations on financial literacy books for young children.
5. Celebrate Saving Milestones
Make saving fun by setting small goals like saving for a new toy or outing and celebrating when your child reaches them. This reinforces the idea that saving leads to rewards and builds a positive association with financial habits.
🎉 Try This: Create a colorful savings chart or sticker tracker to mark progress.
Start Early, Save Smart
Teaching your preschooler about money doesn’t require complex lessons—it just takes consistency, creativity, and a little bit of play. By starting early, you’re laying the foundation for lifelong financial wellness.
Ready to take the next step? Visit any Midwest Bank location to learn more about our new Kids Savings Account, designed to help young savers grow their money and their confidence.