It is never too early to start teaching your kids about money. The value of money, budgeting, saving, spending, debt avoidance, investing and generous giving constitute a great part of the body of knowledge your kids will need to be well-versed in if they are going to build a solid financial foundation.
Interestingly, 92% of parents think that it’s important to help their children become money-savvy. However, the majority of parents are not sure where to find the right tools and age-appropriate resources to accomplish this task.
Kids are open to learning at a very young age and their adult financial behaviours and habits start to form early on. If you are going to raise financial superstars, you need to start discussing money with them and finding teachable money moments as early as age 3. As per research, your boy or girl’s future money paradigms will typically have developed by the age of seven (7) year.
Teaching Kids About Money by Age
Your kids will eventually learn something about money, whether it is from you, their peers, school, life or elsewhere. The question, however, is “Will they learn good or bad lessons about money?” If you want them to be great money stewards, you will need to show them how. Provide them with good examples as they will likely pick up some of your own habits.
Most schools do not have specific financial literacy classes built into their curriculum, so it is up to you to give your kids age-appropriate lessons about how to manage money. As a parent, here are some concepts you can drill into your kids depending on their age.
Money Lessons for Children Between 3-5 years
This is the age when they start to grasp simple mathematical concepts. Give them some fake or real money so they can identify a penny, nickel, dime, quarter, and a dollar. Introduce the basics of saving, spending, earning, and giving money.
Get them to start saving using a piggy bank or glass jar. Let them practice paying for imaginary groceries, candy, etc.
Money Lessons for Children Between 6-10 years
Continue building on the money foundation you have already laid. Let your kid start making simple decisions relating to financial questions and explain your rationale for the financial decisions you make. For example, let them know why you choose to wash your car at home instead of going to the car wash or why you decided to buy a generic item instead of the pricier branded alternative.
Offer them a small weekly or monthly allowance or give them commissions for carrying out certain chores. Provide guidance on how they should divvy up their money into different “buckets” for saving, spending, and giving.
This is also the time to start teaching them to delay gratification. Kids want everything right now. They should learn to wait, be patient, and avoid impulse buys.
Money Lessons for Children Between 11-16 years
As kids move into their teenage years, it is time to introduce budgeting, debt, investing (compound interest), banking and other concepts. If they do not yet have a real savings bank account, you should open one now. Educate them about compound interest and how it helps to grow their money (i.e., investments) and how it can also increase debt balances (i.e., credit cards).
Assist them in creating their first real budget and help them to understand the differences between needs and wants. Start discussions about future college costs and how they can start saving for their post-secondary education.
Show them by example that credit cards should not be used to rack up debt. Use a credit card only if you can pay off the balance in full each month.
Let them stretch their horizons and earn money with summer jobs and other side hustles. Introduce the concept of entrepreneurship, hard work, smart work, and the dignity of labour.
Financial literacy is a day-to-day lifelong business and a must for kids if they are going to start out on an even footing and lead successful lives. Get your kids on the right track by making an example of your own personal finances and introducing the right money concepts as required.
Introducing The Family Money School
We can all agree that bringing up kids to be money-smart is a good thing. The challenge, however, is that age-appropriate resources and tools are hard to come by. Thing is, your kids’ school curriculum is unlikely to have what it takes to make them adequately financially literate.
This is where the Family Money School developed by Matt Matheson comes into play. Matt has a masters degree in Education and almost 15 years of experience as an educator and school administrator. He knows what it takes to get kiddos to learn and has been featured on major financial publications like the Huffington Post, MoneySense, GOBankingRates, Rockstar Finance, etc.
The Family Money School is a course designed by parents for parents. With two kids of my own (ages 5 and 3), my interest was piqued when this course was launched. Based on what I have read and listened to so far, it is indeed a great resource for parents!
What’s in the Family Money School?
Some of the topics covered in the Family Money School include:
- What to teach your kids and when to teach it
- The different kinds of allowances for kids and which is the best
- Helping kids to understand needs vs. wants
- Helping your kids to save
- Teaching them generosity
- Determining your money values
- Putting money in its right place, and more.
The course is jam-packed with resources:
Video Lessons: There is no better way to learn quickly than with visual straight-to-the-point lessons for busy parents.
Worksheets: Easy-to-follow worksheets, templates, activity descriptions, charts and printables that bring the video lessons and slides to life.
Check out the Family Money School for an overview of what you will get. The price of the course is $67 (one-time fee) and includes everything plus a 30-day money-back guarantee.
Also included in the course are:
- Fully Customizable Chore Chart
- Tips To Help Your Kid Save
- Money Conversation Starters
- An Expense Tracker
- Money Values Inventory
- The Money Genius’ First Budget
- Printable Slides for Note Taking
- Ideas for Serving as a Family
I personally like the easy flow of the course and its practical and actionable tips and ideas. I also love that the package comes with a free monthly live Q&A session and unlimited email support.
Want to raise a Money Rockstar? Check out the Family Money School here and get started!