Learning to make smart financial decisions is one of the most important life skills we can develop. After all, money touches nearly every part of life, from where we live to how we spend our time. Passing that knowledge on to our kids can help them build responsible habits that are crucial in adulthood.
Fortunately, teaching kids about money doesn’t have to be complex—you can naturally weave in lessons about earning, saving, budgeting, and borrowing through simple, everyday moments. Depending on their age, open conversations, fun games, and modeling good behavior can help build a foundation for a smart financial future.
Here are some ideas to help get you started:
Preschool
Preschool Experts say it’s best to start financial education once your child has a basic foundation in math, usually around second or third grade. But basic concepts like the difference between wants and needs can be introduced much earlier.
Even a trip to the store can be a great learning experience. Play is a great way to reinforce these ideas. My sister and I used to pretend our kitchen was a grocery store—one of us would “shop” in the pantry while the other played cashier. We had fun, but we were also unintentionally learning about money.
Elementary School Kids
Talk to your kids about the connection between work and money. Whether you work in an office or from home, your child has probably wondered what you’re doing all day. Explain your job, that you’re paid for your work, and how that money is used for both wants and needs. Try to keep the conversation positive. I love telling my kids I get to write about them—it makes them light up!
Giving an allowance for completed chores is a great way for kids to experience the work-money connection firsthand. It gives them their own money to manage and the chance to practice saving for something they really want.
When my son saves up for the next LEGO set he’s been eyeing, we go to the store together. We talk about things like sales tax, and then he pays the cashier himself. I’ve seen his confidence grow through these experiences, and it’s also a great opportunity to reinforce polite manners when interacting with store employees.
You can even include children in age-appropriate discussions about budgeting and big purchases. For example, if you’re planning a family vacation, walk them through how you plan for necessities like food, transportation, and pet boarding, and how you set aside money for fun activities once you reach your destination! This helps them see how planning ahead helps keep spending on track.
Tweens and Teens
Research shows that having a job teaches teens important life skills like responsibility, time management, saving, and budgeting. Encourage your teen to get a part-time job and help them open a bank account to manage their money. A good goal is to save 10-20% of their paycheck. Over time, this helps them build a foundation for financial independence.
This is also a great time to talk about borrowing. Explain how credit cards work, the importance of using them responsibly, and key concepts like interest, credit limits, and fees. When they have shown responsibility and are old enough, you might consider adding them as an authorized user to your own credit card. This allows them to practice using and building credit, while you can still supervise their spending.
If your teen plans to attend college, it’s important to start discussing student loans and repayment after graduation. Our comprehensive guide to paying for college is a great starting resource—from applying for financial aid to understanding fees and repayment.
Model Good Habits
Kids learn best by watching us. Modeling smart money habits is a powerful way to prepare them for the future. By helping them build life skills like saving, budgeting, and distinguishing wants from needs, we’re preparing them to navigate life on their own. It’s never too late to start. To learn more about K12-powered online schools like West Virginia Virtual Academy, go to https://wvva.k12.com/.
