Best Age-Appropriate Money Lessons for Kids

While many might not agree, the fact is that money is the cornerstone for most of our lives, and we spend a considerable time trying to earn it. Seeing how essential it is, we need to learn it and spread the information to the coming generation.

Talking about passing money lessons to our young ones, many parents are curious about the best age-appropriate lessons for kids. What should I teach at this age of growth? This is a common question among parents who are keen on their children’s financial literacy.

You are in the right place if you want to know what to teach your kids about finance at different ages. Let us look at the breakdown. 

Age 3-5: Introducing the Basics

Kids at this age group are typically curious, observant and quick to learn. You start with the basics, where you introduce money to them and teach them how it works. It is highly likely that your toddler has been observing you handle cash and they want to know what it is.

Let them know it is what you use to purchase items, making sure you use real-life examples that they can relate to. For instance, tell them that you use the coin to buy candy.

Help them with physical money recognition, where they differentiate between coins and notes and the various denominations. Explain their values in the simplest words, showing that some denominations have more value than others.

You should also take them through the money exchange process, where they give money for goods and services. Make it easier for them by playing pretend shopping, then take them to actual stores and let them hand over the money.

This is an appropriate age to teach about saving, and the difference between needs and wants.

Age 6-9: Forging smart money Habits

Kids in this age group have already started school and have a concrete idea of how money works. They know how to save, if taught earlier, and your main work will be establishing smart money habits. 

Your child, knowing the value of money, understands how hard it is to come by. Bring in lessons about making money, where you can start theoretically by letting them know everyone works to get funds. 

You may encourage them to take on some chores around the house or neighborhood for an allowance. Optionally, you can lead them through the entrepreneurial path by setting them up with income-generating activities like a lemonade stand or an online store.

With money coming in through allowances, you teach them how to spend it wisely. They should know that money is volatile and if spent badly it never comes back. 

Instill saving discipline by helping them set a goal and stick to it. You can upgrade their savings jar to a piggy bank and track their progress. 

Age 10-12: Beginning of Decision-Making

This developmental stage is characterized by awareness of the surroundings. Your child has more control of their activities and can make some decisions without parental supervision. It is the perfect stage to build their financial confidence by letting them handle some decisions, with a little guidance where necessary.

You can help with their transition to teens by giving them some responsibilities and seeing how they navigate them. Allow them to create simple budgets and let them into the consequences of spending. 

Boost their monetary responsibility by motivating them to pick jobs around the neighborhood to complement their allowances. They can take a paper route, offer babysitting services, and more. 

Introduce them to banking and show them how savings accounts work.

Age 13-15: Walking on Their Own

Teenagers are financially mature and know plenty about money, owing to the school curriculum. Money-wise, they are almost able to walk on their own, and you can push them to take on more jobs to sort out some of their wants. 

They are gradually becoming responsible, which you can motivate by letting them in some household financial decisions. They can help with budget creation and even handle some bills. Insist on savings, and encourage them to take maximum advantage of their bank accounts.

Age 16-18: Transition into Financial Independence

Adulthood is nigh at this development stage and you should be teaching them about financial independence. Acquaint them with real-world monetary hacks that they will use sooner. 

Teach the young adults about credit and debt, specifically how to carefully navigate them while maintaining a decent credit score. Talk about taxes how the deductions work and the need to keep up with their tax returns.

Additionally, they should know about investment and other streams of making money.

Wrapping Up

Money is a constant in our lives and we should strive to know more about it for financial security. It is your responsibility as a parent to educate your kids about money to furnish them with the right skills when they come of age.

We can learn about the best age-appropriate money lessons for kids through this discussion, which you can use as a teaching template for your young one. Please remember that monetary literacy is a continuous process and we also learn as we teach our children.