Teaching children about money and finances is an important aspect of their education, and it’s crucial to start early. Many kids are naturally curious about money and how it works, and it’s our job as parents and caregivers to provide them with the knowledge and skills they need to develop a healthy relationship with finances. Here are some age-appropriate lessons and strategies to teach children about money:

## Preschool and Early Elementary Ages

For young children, the concept of money can be introduced through play and everyday conversations. Teach them about coins and their values, and let them practice counting and sorting pretend or real coins. You can also start talking about the cost of everyday items and the difference between needs and wants. For instance, explain that while they may want a new toy, they need nutritious food and a safe home to live in. This lays the foundation for understanding the purpose of money and how it relates to our daily lives.

As children grow more curious, incorporate lessons about earning money. Explain your family’s or community’s approach to earning an income. For example, discuss the fact that people work to earn money and that different jobs have different salaries. You might say, “Mommy goes to work each day to help people feel better, and for that, she earns money that we use to buy our groceries and pay for our home.” These conversations can help children understand the value of work and the role it plays in our financial lives.

## Late Elementary and Pre-Teen Ages

Once children have a basic understanding of money, build on that knowledge by introducing the concept of saving. Open a savings account for them and explain how interest works, compounding their savings over time. Encourage them to set short-term savings goals, such as saving for a desired toy or game, and help them track their progress. This will teach them about delayed gratification and the benefits of saving.

Another important lesson is distinguishing between needs, wants, and wishes. This helps them understand the difference between short-term desires and long-term goals. For example, explain that while they may want a new video game console, their current console still works well and can be enjoyed for longer. This encourages critical thinking about spending decisions and fosters an appreciation for what they already have.