Teaching money to your kids is one of the most valuable life skills you can teach. By introducing age-appropriate money classes and activities, you can help your child develop healthy financial habits that will serve them well in adulthood!
Jonathan Calos’ guest post
How to teach children money
Whether your child is a preschooler or a teenager, there are fun and practical ways to teach them to save, spend and manage money responsibly.
These fun and practical ideas are meant to make the money children learn both attractive and learn while laying the foundation for their long-term financial success.
Preschoolers: Introducing the basic currency concept
At this age, children are curious and eager to learn. First, the concept of money and its purpose is introduced in a simple, relevant way.
1. Pretend to shop with games
Create a pretend store at home using toys, snacks or household items. Then, let your kids play with money and let them “buy” items. This activity helps them understand that money is goods.
2. Teach coin identification
Introduce coins and their value through interesting games. For example, set up pennies, nickel, dimes and dormitories and ask your kids to identify everyone. You can also sort coins by size, color, or value.
3. Start a piggy bank
Give your child a clear jar to save coins. Explain that saving money means putting it aside in case of something special. Once the jar is full, celebrate by having them use money to celebrate a snack or toy.
Primary school students: Establish fund management skills
Then, as children age, they can start learning more advanced currency concepts such as budgeting and making choices.
4. Give allowance
Allowances can be a great way to teach kids to make money and manage money. Rather than simply giving them money, linking allowances to simple trivia or responsibility and encouraging them to divide their money into categories such as savings, spending, and sharing.
5. Play money-themed chess game
Games like Monopoly Teenagers or Life Games are a great tool to teach kids about money in a fun way. These games introduce concepts such as making money, spending, and savings, while encouraging strategic thinking.
6. Set savings goals
Help your child set a small savings goal, such as buying toys or books. Create a visual chart to track their progress. This teaches the value of patience and delayed gratification.
7. Create a DIY Lemonade Stand
Help your kids build lemonade stands or small businesses occasionally. This teaches them to make money, price and customer service. Plus, it’s a fun way to spend time together.
Middle School Students: Introducing Budget and Smart Spending
At this stage, children can start learning to budget, compare shopping and make informed financial decisions.
8. Create a simple budget
Teach your children how to create a basic budget. For example, if they receive $10, show them how to allocate the savings, spending, and donations. Use real-life scenarios, such as planning a family outing, to make it relevant.
PSST…Crystal is here! My one-hour budget for teen products can help your child complete how to build a basic budget. It also comes with a parent’s guide!
9. Go shopping at the grocery store together
Take your kids to grocery shopping and give them a small budget to buy several items. Show them how to compare prices and find deals. This activity teaches them to make informed spending choices.
10. Introduction to charitable donations
Encourage your child to put a portion of the money on charity. Let them choose a reason they care about and donate money. This teaches the importance of empathy and feedback.
Teenagers: Prepare for financial independence
Teens are ready to learn more complex financial concepts such as making money, saving for the future, and understanding credit.
11. Open a bank account
Help your teen open a savings account and teach them how to manage it. Show them how to track deposits, withdrawals and interest earned. This introduces them to the banking system and the importance of savings.
12. Teach the basics of investment
Introduce your teens to invest in concepts. First, use simple examples such as investing in a company they know and explaining how investments grow over time. Apps like acorns or inventory can make this process more attractive.
13. Discuss credit and debt
Explain how credit works and the importance of using it responsibly. Use real-life examples, such as paying off your credit card balance, to illustrate the consequences of a debt. This prepares them for future management of credit.
14. Host Family Money Night
Turn learning about money into family activities. Spend a night together, learn money, then play games, discuss financial goals, and share stories about savings and spending. This makes money conversations fun and less scary.
15. Expert tip: Lead by example!
Most importantly, children learn by observing their parents. Model good financial habits such as budgeting, saving and avoiding impulse buying. Share your own money-saving tips and experiences to make the course more relevant.
All in all, teaching kids about money doesn’t have to be boring or overwhelming. By incorporating age-appropriate courses and fun activities, you can help your child build a strong financial foundation.
Start early, stay consistent, and make money a positive and engaging experience. Remember that the goal is to provide your child with the knowledge and skills they need to make informed financial decisions throughout their life. With patience and creativity, you can set them on the road to financial success!
Want to raise a smart teenager?
Catch ours Free financial skills for teenagers Set up a guide for future financial success!
