Smart Money Lessons: Teaching Finance At Every Age

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Raising financially literate children begins earlier than many parents think. Every time you mention money (we can’t afford that, buy what you want, etc.), it slowly starts ingraining their spending and saving habits, shaping their future relationship with money.

Teaching kids about money is much more than showing them how to save their allowance. It is about building decision-making skills that will carry through adulthood. Parents can make a lasting impact by starting age-appropriate conversations as early as preschool and adapting those lessons as children grow.

Teaching Littles About Money

Young children benefit from simple lessons on earning and spending. A small allowance tied to chores can teach that money is earned, not given. As kids enter elementary school, encourage them to make choices at the store or save for something they want. These real-life examples reinforce delayed gratification and help them understand basic budgeting.

Some parents argue whether paying kids for chores is something that needs to be done or not. After all, aren’t chores part of the family dynamic? So for our family, we have expected chores and the ones that are above and beyond, which will earn money. For example, washing the dishes is expected, but helping Dad organize his garage is not.

Money for Middle and High School Students

Middle and high schoolers are ready for more advanced lessons. Introduce the basics of checking accounts, debit cards, and compound interest. Talking about part-time jobs (or other creative ways to make money) and managing paychecks can also help teens learn the importance of tracking income and expenses.

Conversations about college costs and student loans become valuable preparation for adulthood. That way, they can make informed decisions and understand the potential risks of taking out big loans as a college student.

Money Management for Young Adults

Once children reach their twenties, financial education should include credit management, retirement savings, and long-term planning (the sooner the better!). This is also a good time to model responsible planning habits through family discussions.

Topics like emergency funds, insurance, and even estate planning in Denver, CO (or wherever you’re located), can help demonstrate that financial literacy is about preparing for all stages of life.

Start Young and Keep Them Informed

Teaching finance at every age empowers kids to make informed decisions. These small, consistent efforts build a foundation that can help your children thrive financially for decades to come. Look over the accompanying resource below to learn more.