Teaching Kids about Money: Financial Literacy for Kids — Debt.com

The way adults behave with money often stems from how they were taught to handle finances as a child. If their parents constantly spent money they didn’t have and were continually in financial trouble, the children wound up with similar bad money habits, according to a T. Rowe Price Study. This is especially true if parents never teach their children financial responsibility in at least some capacity. That’s why teaching kids about money should begin at an early age. It’s important to show children, even as young as 2 years old, that things cost money and there is a value in the things you buy.

The latter is especially important in an age where “toys” can be considered tablets and smartphones that cost much more than a $2 trinket. It’s vital for a child to understand that even experiences can cost something; otherwise, as they get older, they will feel entitled to these experiences and goods. The older a child gets, the harder it will be to change their mindset if they haven’t been taught it in the past.

Financial Literacy for Kids

It’s important to start money lessons for children early. But you can start small. You don’t have to go straight to addition and subtraction, or even costs. Below we’ll highlight several topics to teach your children at certain ages…