The topic of money and finance is one of the most important things in our lives, but it can be tricky to teach children about it.

How do you teach them budgeting, saving, and investing when they’re just learning about the world?

This guide will discuss different age-appropriate ways to teach your children about finance.

We’ll also provide some helpful resources for further reading.

Let’s get started!

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Kids looking at cash and taking notes on how money and finance work

How to Teach Preschoolers and Kindergartners About Money?

Ages 3 to 5 are when we develop our basic understanding of the world. This is when we learn about things like sharing, taking turns, and counting. The human subconscious is a sponge at this age, so kids are soaking up everything around them. By affirming their learning abilities and avoiding negative criticism, you can set the stage for healthy money habits.

Many of our negative subconscious habits are created at this young age. This translates into poor habits as we grow older.

Most adults are unaware of this and never address this psychological problem. By influencing rich financial habits, their ability to accumulate wealth will become a part of their innate abilities.

You can start teaching your kids about money by introducing basic concepts like counting coins and bills.

You can also have them help you count money when grocery shopping or at the bank.

For older preschoolers and Kindergarteners, you can start teaching them about saving. This can be done by setting up a piggy bank or helping them open a savings account at the bank.

You can also teach them about delayed gratification. For example, play a game with the child and let them know they will receive one of their favorite treats. They can go ahead and enjoy it now, or they can wait and receive two treats later.

This will help them understand that sometimes it’s better to wait for something if they want more. Most adults miss this lesson, which can be seen in their financial decision as they begin earning income.

For example, they may spend all their money on unnecessary things instead of investing or saving for the future.

You do not want to teach them complicated financial theories and concepts at this age, but you want to start them on the path of financial literacy.

Rather than showing them the complete financial system and market participants, it is best to help them develop habits supporting their money mindset.

Teach your children about finance at a young age so they can develop good financial habits that will last a lifetime. It’s important to continue their financial literacy as they continue to grow.

Related Content: What is a 529 Education Plan? – Everything you Need to Know

How to Teach Elementary Students and Middle Schoolers About Money?

Mother teaching two kids about finance

Elementary school is when kids start to understand more abstract concepts. They can now grasp the idea of earning, saving, and spending money. At 6 to 14 years old, they can use logic and reasoning to make decisions. You can start by teaching them the difference between needs and wants. Explain that we need food and shelter, but we want luxury items. This will help them understand that we have to budget our money and be mindful of our spending.

You can also introduce the concept of credit and debt. Explain that when we borrow money, we have to pay it back with interest.

This is an important lesson because it will help them understand the importance of not borrowing more money than they can afford to pay back.

Teaching them about investing can be helpful. Explain that investing is when we put our money into something that will grow over time.

For example, you can explain how buying shares in a company can make you money if the company does well.

You can also teach them about philanthropy and giving back. Explain that there are people in the world who are less fortunate than us and that we can help by donating money to charities. This is a great way to instill the importance of helping others in your children.

As your children get older, you can teach them more advanced finance concepts like compound interest and diversification. These concepts will help them further understand how to grow their money.

How to Teach Teenagers About Money?

Teenager with a wallet from money she earned

Ages 16 to 19 are when kids start to become more independent. They can drive, get a job, and start making their own financial decisions. Spending it all when they first receive an income can be tempting. If you can educate them on the notion of “paying yourself first,” you may assist them in avoiding this trap.

You can start by teaching them about budgeting. Help them understand how to track their income and expenses so they can stay on top of their finances.

It’s also important to reinforce the importance of bad debt and good debt. Explain that not all debt is bad and that some debt can be helpful. For example, debt to buy a rental property can be good debt because it produces income.

You can also teach them about assets and liabilities. Show them how an asset is something that puts money in their pocket, like dividends from a company. A liability is something that costs them money, like a car payment.

The concept of inflation can be explored if they are beginning to develop rich financial habits. By showing how the currency’s value is constantly devalued due to an increase in supply from government policies and banking practices, they will understand the importance of saving and investing.

You can also start teaching them about investing in the stock market at this age. Help them understand how to research companies and make wise investment choices. Show them how speculation can be risky and how to avoid it.

It’s also important to teach them about saving for retirement. Explain that they need to start saving for a comfortable retirement later in life.

You can also help your teenagers to create financial goals. Help them understand the importance of setting goals and how to create a plan to achieve those goals. Having a set plan makes them more likely to achieve their financial goals.

As your teenager enters adulthood, reinforce the importance of good financial habits. Learning is a lifelong process. Help them understand how to make smart decisions with their money so they can enjoy a bright future.

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The Bottom Line: Financial Literacy Is Important For All Ages

Teaching our children about money is one of the most important things we can do as parents.

By instilling good financial habits early on, we can set them up for a bright future. You can teach your children many different concepts about money, so start with the basics and build from there.

As they get older, you can introduce more advanced concepts. The most important thing is to be patient and to have regular discussions about money. Many families avoid conversations about finances, but being open and honest can set your children up for a bright future.

Children and teenagers also learn by example. As leaders of the household or classroom, you should also be modeling good financial behavior.

If you always make smart money decisions, your children will be more likely to do the same.

You can also introduce them to important financial books such as ‘Rich Dad Poor Dad‘ or have them listen to Dave Ramsey’s radio show.

By doing so, you are showing multiple perspectives on personal finance, which can help broaden their understanding.

Teach your children to learn more about finance than they work. It’s always helpful to earn an income, but financial literacy will be the difference between a good life and a great life.

You can even pay them for each chapter or book they read instead of paying them to do chores around the house.

This will help them understand that learning about money is important and can be fun too!

As a parent or guardian, you will be helping your children to develop good financial habits that will last a lifetime. You can also share articles on this website to help build their financial knowledge.

We all use money; by sharing this article with other parents, you are giving back and helping the next generation.


We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!