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Money is one of those topics that can feel a bit tricky to discuss with your kids. How much do you share? When do you start? And how do you ensure they understand the value of a dollar without overwhelming them? Whether you’ve got a toddler just learning about the concept of “more” or a teenager eyeing that first job, talking to your kids about money is one of the most valuable lessons you can teach them.

So let’s explore the different stages of financial conversations, how to tailor them to your child’s age, and why it’s essential to start early.

Teaching the Value of Money: The Preschool Years (Ages 3-5)

Ah, the age when your little ones think money grows on trees. For little ones, money is an abstract concept. Start with something tangible, like coins and bills, to help them grasp the idea that different things have different values. Here are some ideas to help plant the seeds of financial wisdom:

1. The Piggy Bank Parade: Get your tots excited about saving with a fun, colorful piggy bank. Make a game of feeding it coins and watch their eyes light up as it fills! Set a goal, like saving for a small toy, and talk about how putting a little bit of money away each week brings them closer to that goal.

2. Grocery Store Guru: Turn shopping trips into learning adventures. Let them help you find items and compare prices. Use cash if you can when you shop at the store. Cashless transactions make it difficult for young children to conceptualize how money works.

3. Play “Store” at Home: Set up a pretend shop with household items and play money. This helps your little ones understand how money is used. You’ll also be introducing math skills as they use their play money.

4. Be a Good Role Model: Even at this age, it’s important to set a good example for your children when it comes to spending and saving. The examples you set now will have a lasting impact on how your children handle money in the future.

At this age, it's all about making money fun and tangible. There is no need for complex budgeting talks just yet. This is also a good age to start teaching your kids that money is earned by working. 

Check out these helpful resources:

• The Berenstain Bears Dollars and Sense and Trouble With Money are fun books that teach little ones about money management.

• The book What is Money? by Kelly Lee teaches young ones about how we get money, how to use money, and why saving is important.

• The Sagevest Kids website has many helpful resources for teaching kids ages 3-18 about money.

Teaching the Value of Money: The Elementary Years (Ages 6-10)

As kids enter elementary school, they become more curious about how money works. They are ready for some real-world money lessons:

1. Allowance Adventures: Now is the time to introduce the concept of earning. Some families tie allowances to chores, while others view chores as family responsibilities and give a set amount. The key? Consistency and clear expectations. 

2. The Three Jar Method: Introduce the holy trinity of money management—saving, spending, and sharing. Let them divide up their allowance and watch as they become mini-philanthropists!

3. Wants vs. Needs Game: Discuss the difference between things they need (like school supplies) and things they want (like the latest video game). This helps them to prioritize spending. Make it a fun family activity. Cut out pictures from magazines and sort them into “wants” and “needs” piles. Warning: Prepare for heated debates about whether the latest video game is a “need”!

4. Take them Shopping: Continue to involve your kids in family shopping trips. Give them a small budget for snacks or toys and let them choose how to spend it. This can help them understand that money is finite and spending decisions matter.

Check out these helpful resources:

• Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss by Walter Andal was written to help equip children with the money management skills they need to be financially successful later in life.

• With the Bankaroo app, kids will learn how to appropriately save, spend, and budget.

Teaching the Value of Money: The Tween Years (Ages 11-13)

Brace yourselves—the age of “But all my friends have it!” has arrived. It’s time to ramp up those money conversations.

1. Budget Bootcamp: Help them create a simple budget for their allowance or earnings. Apps can make this process more fun.

2. The “Expensive Mistake” Fund: Encourage them to save money for those inevitable “oops” moments. It’s like insurance, but for tweenage impulse buys!

3. Introduce Investing...with Gummy Bears: Explain compound interest using gummy bears (bear with me here). Give them 10 gummies on Monday. If they don’t eat any, they get 2 more on Tuesday. By Friday, they could have a gummy bear empire! Just don’t let them eat into their profits.

4. Smart Spending: Discuss the importance of being a smart consumer—researching purchases, looking for deals, and understanding that sometimes it’s better to wait and save up for a quality item rather than to buy the cheapest option now.

Check out these resources:

• The Money Confident Kids website offers games and activities to teach kids about money.

• The Teen’s Guide to Personal Finance by Joshua Holmberg is an excellent resource that covers everything from budgeting to investing.

• With the Greenlight app, parents teach their kids about money management by providing tools for saving, spending, and investing.

• The KiddieKredit app helps parents teach their kids about credit scores. Parents can assign tasks for their children to complete by a certain deadline. If they fail to complete the task on time, it will impact their “kredit” score.

Teaching the Value of Money: The Teen Years (ages 14-18)

These young adults are ready for some serious financial flexing. This is the age to talk about everything from managing a checking account to understanding student loans. You want your teen to enter adulthood with the confidence and knowledge to manage their money wisely.

You’ll want to be sure to have these important conversations:

1. The Part-Time Job Jam: Encourage them to get a part-time job or start a side hustle. Nothing teaches the value of a dollar quite like earning it yourself!

2. Credit Card Crash Course: Before they fly the nest, teach them about credit scores and responsible credit use. Consider sharing some of your credit card horror stories—we all have them!

3. College Cost Reality Check: Openly discuss college costs and potential student loans. Use tools like the College Sco to compare schools and outcomes.

4. Personal Finance Class: If your state doesn’t require a personal finance class, encourage your child to sign up for one as an elective. This presents an ideal opportunity for your child to receive additional reinforcement from an external source about the concepts you’ve been teaching them.

Check out these resources:

• Junior Achievement offers programs and resources to inspire and prepare young people to succeed in a global economy. 

• How to Adult by Jake Cousineau is an engaging book that teaches young adults how to be prepared for the financial realities of adulthood.

• NextGen Personal Finance offers a full range of lessons on personal finance. This curriculum is often used in middle and high school finance courses, but anyone can access it and use the lessons.

Financial Literacy for Youth: Making Money a Family Affair

Want to really drive those money lessons home? Get the whole clan involved in your family’s finances (within reason, of course—no need to stress them out with your mortgage payments).

Try these ideas:

1. Family Budget Meetings: Hold regular (and fun!) family finance check-ins. 

2. Vacation Planning Committee: Let the kids help plan and budget for family trips.

3. Charity Choice: Allocate a portion of your family’s giving budget and let the kids research and choose charities to support.

4. Coupon Scavenger Hunt: Turn saving money into a game. Who can find the best deals this week?

5. Investment Club: For older kids, start a family investment club. Each member can research stocks or funds and make a case for investing.

There’s no one-size-fits-all approach to teaching kids about money. Some families swear by allowances, while others prefer to tie money to chores or achievements. The key is to align your financial lessons with your family’s values and what feels right for you.

Most importantly, make financial matters a normal, positive part of family life—not a taboo topic or a source of stress. We want our kids to develop a healthy relationship with money—one where they understand its value, know how to manage it, and feel confident in their financial decisions.

Ready to Level Up Your Family’s Financial Game?

At Financial Fitness Coaching, we believe in empowering families to live their best financial lives. Whether you’re a small business owner, a driven professional, or a motivated couple, we’re here to help you and your family achieve financial success—on your terms.

If you’re ready to supercharge your family’s financial fitness, we have just the thing for you! Download our free article, “Personal Finance - Top 20 Tips to Save More, Spend Less without Sacrificing Your Lifestyle.” It’s packed with practical, painless ways to boost your family’s financial health, just like you’re teaching your kids to do.