35 Ways to Teach Kids About Money (2024)

FAQs

How do you teach kids about money? ›

Use allowances to teach children how to handle wealth. Have them divide their allowance into three equal parts. One-third goes toward their own pleasure, one-third into savings and one-third to charity. This method helps them learn about other uses of money, beyond buying them things.

Hirshman suggests starting even earlier, between three and five. "This is when they have the ability to make choices and reason," she said, adding that starting simple and progressing to passing on parents' own money values is ideal.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

Money is a mode of payment accepted by both sellers and buyers for goods and services. Money is what we give in return when we buy stuff like food, clothes, house, groceries, etc. We give money in return for purchasing anything. This is a simple trade or exchange.

Kids from rich households inherit the attitude of being responsible for their actions and consequences. Especially in the event that things go wrong or deviate from their plans and expectations, they accept full responsibility for it. In this way, they are able to find a way forward.

Lesson Summary

Begin by teaching them to skip count, and then move on to explaining all about money. Have students identify value, count, and practice before combining more than one type of coin. Finally, it will be time to put them all together. Reinforce skills by connecting to home and making learning visible.

What are the five money principles? ›

This article will explore the five basic principles of financial literacy: earn, save & invest, protect, spend, and borrow, providing you with actionable insights to enhance your financial knowledge and make the most of your resources. Earn. Save & invest. Protect. Spend.

Throughout pre-kindergarten, kindergarten and grade 1, your child will learn how to count coins and typically know how to count money before they enter third grade.

Skip-counting is where you count by multiples of 5s or 10s or 20s. It is a simple way for your child to count bills and coins of most U.S. denominations. Continue practicing skip-counting with your child until they can skip-count all coin values up to one dollar and 100 by 5s,10s, and 20s.

Ages 3-5 (Pre-K)

At this age, children are beginning to understand and recognize money. You can begin by teaching them the value of coins and bills and how to count them. You can also introduce basic financial concepts like spending, saving, and earning.

for school-age children

Understand how much money is needed to purchase an item and how to count change. Understand that money lost will not be replaced. Understand that things cost money. Understand that working or getting an allowance are ways to earn money.

Currency is the official money of a country. It consists of paper money and coins. Each country has its own form of currency, which is overseen by the central bank of that country.