Teaching kids about money doesn’t happen all at once—it grows with them. From preschoolers learning to count coins to preteens managing allowances and saving for goals, each stage of childhood offers unique opportunities to build financial literacy. Here’s a guide to help parents introduce money concepts in fun, age-appropriate ways.
Preschoolers (Ages 3-5): Learning What Money Is
At this age, kids are just beginning to understand that money is used to buy things. Focus on simple, hands-on activities that make money tangible.
Try This:
- Play pretend store: Use play money and household items to teach basic exchange.
- Use a clear piggy bank: Let them see their coins grow over time.
- Talk about choices: “We can buy this toy or save for something bigger.”
🧠 Goal: Introduce the concept of money and the idea of saving.
Ages 6-7: Save, Spend, Share
Kids are ready to grasp basic budgeting concepts. This is a great time to introduce the idea of dividing money into categories.
Try This:
- Use a 3-jar system: Label jars for Save, Spend, and Share.
- Give a small allowance: Help them decide how to divide it each week.
- Set a savings goal: Work together to save for a toy or outing.
🧠 Goal: Teach budgeting basics and the value of saving over time.
Ages 8-10: Budgeting with Purpose
Kids at this age can start making more independent financial decisions. They’re ready to learn how to plan for short-term and long-term goals.
Try This:
- Create a simple budget worksheet: Track allowance, spending, and savings.
- Talk about needs vs. wants: Use real-life examples like shopping or school supplies.
- Encourage goal setting: Help them save for something meaningful, like a birthday gift or school event.
🧠 Goal: Build decision-making skills and introduce financial planning.
Ages 11-12: Real-World Money Skills
Preteens are preparing for more independence and can handle more complex money concepts. This is a great time to introduce earning, saving for larger goals, and even banking basics.
Try This:
- Help them earn money: Babysitting, chores, or small jobs.
- Open a student savings account: Teach them how to deposit and track their money.
- Introduce budgeting apps or tools: Let them explore digital ways to manage money.
🧠 Goal: Prepare for financial independence and responsible money management.
Final Thoughts
Money lessons don’t have to be complicated—they just need to grow with your child. By introducing age-appropriate concepts early, you’re helping your child build confidence, responsibility, and lifelong financial skills.
Want more resources? Explore our Financial Literacy Hub for blog articles, worksheets, and tools designed for every stage of your child’s financial journey. And don’t forget to check out our Kids Savings Account and Student Checking Account to support their learning with real-world experience.