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How To Teach Kids About Money

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How to Teach Preschoolers and Kindergartners About Money

I know they’re only this little once, but preschoolers and kindergartners are old enough to count (and no doubt they’ve seen you spend money). My point being: It’s never too early to start teaching your kids about money, and this age is no exception.

Use a clear jar for their savings.

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Who had one of those classic pink piggy banks growing up? It’s a great idea, but piggy banks don’t give kids a visual. When you use a clear jar, your kids can actually see the money growing. Yesterday, they had a dollar bill and five dimes. Today, they have a dollar bill, five dimes and a quarter. Talk through how when you save money, your money grows. And make a big deal about seeing their savings jar filling up.

Set an example with your own money habits.

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Money habits in children are pretty much formed between the ages of 6 and 12.1 Little eyes are watching you. If you’re slapping down plastic every time you go out to dinner or the grocery store, your kids will notice. Or if you and your spouse argue about money all the time, they’ll see that too. Set a healthy example for them and they’ll be much more likely to follow it when they get older. After all, more is caught than taught.

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Show them stuff costs money.

When you’re teaching kids about money, you’ve got to do more than just say, “Sorry, kids. That pack of cars costs $5.” They’ve got to experience how money works. Help them grab a few dollars out of their jar, take it with them to the store, and let them physically hand the money to the cashier. Experiencing the lesson in real time will have more impact than a five-minute lecture.

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