Money is part of life, but many of us never learned how to handle it until we were already struggling with debt, bills, or budgeting. Teaching your kids about money early gives them a head start toward financial independence, confidence, and security. The good news is that you don't need to be a financial expert yourself to raise money-smart kids. You only need to start the conversation and keep it going. Here's how to teach money lessons that grow with your child:
Ages 3-6: Introduce basic concepts
At this age, kids are beginning to understand choices and consequences. Use simple, everyday situations to introduce the basics.
Key lessons:
- Money is used to buy things
- You have to choose how to spend it
- Saving means waiting to get something you want
Activities to try:
- Let them hand over money at the store
- Use clear jars to show how money grows when saved
- Play store or restaurant to practice spending and change making
Try saying:
"We only have $5 to spend. Do you want the crayons or the stickers?"
Ages 7-10: Build money habits
Kids in this age group can grasp more abstract ideas like saving for a goal or earning money. Now is the time to lay the foundation for responsible habits.
Key lessons:
- Money is earned through work
- Budgeting means planning how to use money
- Needs and wants are different
Activities to try:
- Offer an allowance tied to simple chores
- Help them divide money into "spend," "save," and "give" jars
- Set a short-term savings goal (like a toy or game) and track progress
Try saying:
"Do you want to spend your allowance now or save it for something bigger next week?"
Ages 11-14: Teach responsibility
Tweens are ready for deeper money conversations, especially around choices, peer pressure, and setting goals.
Key lessons:
- How to track spending and stick to a budget
- The value of comparison shopping and delayed gratification
- How advertising can influence spending
Activities to try:
- Let them manage a monthly allowance for needs like school lunches or gifts
- Introduce a basic budgeting worksheet or app
- Talk about real-life money decisions you make (like grocery shopping or bill paying)
Try saying:
"Should we spend money on the applesause that is $8 for 10 or $12 for 12?"
Ages 15-18: Prepare for the real world
Teens are on the edge of financial independence. This is your chance to give them hands-on experience with earning, spending, saving and making mistakes while the stakes are still low.
Key lessons:
- How bank accounts, credit, and interest work
- The basics of taxes, paychecks, and saving for large goals
- How to avoid debt and use credit responsibly
Activities to try:
- Help the open a student checking/savings account
- Review a pay stub or create a mock paycheck together
- Practice filing out a FAFSA, scholarship form, and budget for college
Try saying:
"Let's discuss where to put Summer your paycheck."
Need more support?
Contact Walters Financial Wellness for more tips!