Teaching children about saving money is a valuable life skill that prepares them for financial success. You might think that preschoolers and kindergartners are too young to learn about money, but the truth is—they’re not! Kids at this age are already curious about the world around them, including how money works. Whether they see you paying for groceries or hear you talking about saving, they already absorb these ideas.
Why Start Teaching Money Lessons Early?
Believe it or not, kids as young as five can grasp the idea of saving money. Research from the Consumer Financial Protection Bureau even suggests that children are developmentally ready to understand money basics by this age. Sure, giving them an allowance is a good start, but the real magic happens when you teach them how to save, budget, and spend wisely.
By giving them these tools early on, you’re setting them up to manage money confidently as they grow older.
Simple, Fun Ways to Teach Kids About Money
Preschoolers and kindergartners don’t need a complex lesson plan—just simple, fun activities that help them get familiar with money. Here are some easy ways to start:
1. Use a Clear Jar for Savings
Remember those classic piggy banks? They’re cute, but not very practical for teaching kids. Instead, use a clear jar so they can actually see their money growing. When they add a coin or two, they’ll watch their savings build over time. Talk to them about how saving a little every day helps them buy something they really want later. It’s a simple concept that makes saving fun!
2. Lead by Example
Kids are always watching, and they’ll pick up on your habits, good or bad. If they see you budgeting, saving, and spending wisely, they’ll be more likely to follow suit. Try talking through your money decisions in front of them, like explaining why you’re saving for a family trip instead of buying something new right away. Little eyes are always observing, and they’ll learn from what they see.
3. Teach Them What Things Cost
Young kids often don’t understand that everything has a price. So instead of just saying “no” to a new toy, explain how much it costs. Even better, have them take a few dollars from their jar and pay for something themselves. Letting them hand the money to the cashier makes the lesson real, and they’ll start to understand that spending means giving up some of their savings.
How to Teach Elementary and Middle Schoolers About Money
As your child grows, their understanding of money deepens. By the time they’re in elementary or middle school, they’re ready for more hands-on lessons like budgeting and making spending choices.
4. Show Them Opportunity Costs
Opportunity cost is a fancy term for making choices with your money. In simple terms, it’s about helping your child understand that buying one thing might mean giving up another. For example, if they buy a new video game, they may not have enough money left for a pair of shoes they’ve been eyeing. Teaching them how to weigh decisions helps them think more carefully about how they spend.
5. Pay Them for Chores
Rather than just giving your child an allowance, consider paying them for doing chores around the house. This helps them connect the idea of earning money with working for it. Whether it’s taking out the trash, mowing the lawn, or cleaning their room, they’ll begin to understand that money comes from effort—not just because they ask for it.
6. Curb Impulse Buying
We’ve all been there—your child sees something in a store and has to have it right now. Instead of giving in, teach them to wait before making a purchase. Encourage them to sleep on it for a day and see if they still want it tomorrow. More often than not, they’ll forget about the item, and you’ll both be glad they didn’t spend their money on an impulse.
7. Encourage Giving
Once your child starts earning a little money, talk to them about giving. Whether it’s donating to a charity, helping a friend, or supporting a cause they care about, giving teaches generosity and kindness. And over time, they’ll see that giving feels good, not just for the person receiving but for themselves too.
Teaching Teens About Money: Preparing for the Future
As your kids move into their teenage years, they’re ready for more advanced money lessons. At this point, they’ve probably got the basics down, so it’s time to focus on building responsibility and planning for the future.
8. Teach Them Contentment
Let’s be real—teens are surrounded by social media and all the “highlight reels” of other people’s lives. It’s easy for them to fall into the comparison trap, wishing they had the newest phone or a fancier car. Help your teen understand that contentment comes from appreciating what they have, not from always wanting more. Remind them that financial security and long-term goals are more important than keeping up with friends.
9. Open a Bank Account
By the time your teen reaches high school, it’s time to open a simple bank account. This is a great way to introduce them to managing their own money, whether it’s from a part-time job or allowance. Walk them through how to use the account, check balances, and keep track of spending. It’s an essential life skill they’ll need as they head into adulthood.
10. Get Them Saving for College
College may feel far off, but it’s never too early to start saving. Encourage your teen to put aside part of their earnings from a summer job or babysitting. Whether they contribute to a college fund or save it in a separate account, it’ll give them a sense of ownership over their education.
11. Warn Them About Debt
Before your teen even thinks about applying for college, have a serious talk about debt—specifically, student loans and credit cards. Let them know that taking on unnecessary debt can have long-lasting consequences. Discuss alternatives, like community college, scholarships, or working part-time to avoid falling into the debt trap.
12. Introduce the Power of Investing
Once your teen has a good grip on saving, introduce them to the idea of investing. It might sound intimidating, but even small investments can grow over time thanks to compound interest. Teach them that starting early gives them a big advantage, and they’ll be well on their way to building wealth before they even hit their 20s.
13. Encourage Them to Earn Their Own Money
Teens have more free time than they think. Whether it’s during summer break or after school, help them find ways to earn money on their own. From part-time jobs to starting their own small business, earning money builds confidence, work ethic, and independence.
Conclusion: Starting Early Makes All the Difference
Teaching your kids about money doesn’t have to be overwhelming or boring. By keeping lessons simple and fun, you’ll equip them with skills that will last a lifetime. From preschoolers learning to save in a clear jar to teenagers mastering budgeting and investing, every step of the way is a chance to build their financial future. Start today—because the sooner they learn, the better prepared they’ll be for whatever life throws their way.