In today’s world, financial literacy is as essential as reading and math. Yet, many kids grow up with little understanding of how money works—leading to poor financial habits in adulthood. As parents, we have a unique opportunity to shape our children’s money mindset early on.
Here’s what your child should know—and when.
🧒 Ages 5–8: Understanding the Basics
At this stage, kids should learn:
- What money is and the concept of earning (e.g., allowance or simple chores).
- The difference between needs vs. wants.
- The habit of saving a portion of what they receive (using jars or envelopes helps).
🛠 How parents can help:
- Use a clear jar for savings so kids can see their money grow.
- Play money-related games like store or Monopoly Junior.
- Explain purchases aloud: “We’re choosing this cereal because it’s on sale.”
👦 Ages 9–12: Budgeting & Planning
By now, kids should understand:
- Setting savings goals (e.g., saving for a toy or a gift).
- Budgeting a small amount of money.
- Earning through effort, like helping neighbors or running a lemonade stand.
🛠 How parents can help:
- Give a weekly allowance tied to responsibilities, not entitlement.
- Introduce basic budgeting tools or apps for kids.
- Help them plan a small project, like saving for a game or gift.
🧑 Ages 13–18: Real-World Money Skills
Teens should start learning:
- How bank accounts work (checking, savings, interest).
- Credit vs. debit, and the basics of borrowing and interest.
- How to earn income, manage expenses, and track spending.
🛠 How parents can help:
- Open a teen checking/savings account with supervision.
- Include them in family budgeting talks—e.g., grocery lists, bill payments.
- Encourage part-time work or internships to build earning experience.
💡 Final Thoughts
Kids don’t need to be finance experts—but they do need a foundation of good money habits. Just like we teach them to read, swim, or ride a bike, financial literacy is a life skill best taught early, often, and through real-life examples.
Remember: It’s not about the amount of money—they learn from how you handle it.
