{"id":999719,"date":"2022-11-18T11:51:42","date_gmt":"2022-11-18T16:51:42","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=999719"},"modified":"2026-03-09T18:26:13","modified_gmt":"2026-03-09T22:26:13","slug":"teaching-kids-about-money","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/banking\/kids-banking\/teaching-kids-about-money","title":{"rendered":"Teaching kids about money: 8 ways to start"},"content":{"rendered":"

Teaching kids about money management is one of the most important lessons parents can impart \u2014 and it\u2019s never too early to start. Many experts agree that kids as young as three can start their journey toward financial literacy. And by the age of seven, they can form lifelong money habits, according to a study by the University of Cambridge.<\/p>

But children develop at different rates, so it\u2019s up to you to decide when your little one is ready. To help you get started, we rounded up eight tips you can use to teach your kids about money \u2014 whether they\u2019re three-nagers or on their way to adulthood.<\/p>

1. Introduce bartering or play pretend store \u2014 Ages 3 to 4<\/h3>

Even before your tot enters kindergarten, you can familiarize them with the concept of bartering: exchanging goods or services for something of comparable value.<\/p>

Try this with toys first, then consider getting a grocery store playset that lets you and your little one roleplay as a cashier and customer. These playsets typically include a shopping basket, plastic produce and a child-sized cash register you can use to teach how financial transactions work.<\/p>

As your kid gets a bit older, they may even hone their bartering skills with friends by trading baseball cards, Pok\u00e9mon cards or other children\u2019s collectibles. (Remember Beanie Babies?!)<\/p>

As an added bonus, this can also sharpen their social skills. (I\u2019ve never been more popular than when I snagged Ken Griffey Jr.\u2019s rookie card in third grade!)<\/p>

\"lightPro tip:<\/h4>

Make a game out of teaching your child about paying for things with money by getting a few small toys from the dollar store and having your kids give you some of their fake money for each toy. Kids get a new toy while starting to learn how money works.<\/p><\/div>

2. Teach them about bills and coins \u2014 Ages 3 to 7<\/h3>

Once your little one is old enough to understand numbers and their value \u2014 and to know not to put money in their mouth! \u2014 it\u2019s time to teach them about cold hard cash.<\/p>

\u201cChildren should be taught to recognize currency and specific denominations as soon as they\u2019re able to understand basic counting,\u201d says Mark Daoust, CEO of the business marketplace Quiet Light.<\/p>

\u201cIf you teach a child what a quarter is and that there are four of them in a dollar, by the time they start school, they\u2019ll have a basic knowledge not only of money but of addition, subtraction, multiplication and division.\u201d<\/p>

On your next trip to Walmart, give your child $5 and tell them they can pick out a toy to buy. This is the perfect opportunity to drive home the true value of money \u2014 and why they can\u2019t afford that Batmobile Lego set they claim they can\u2019t live without.<\/p>

\"lightPro tip:<\/h4>

Use a catchy song \u2014 like this one on YouTube Kids<\/a> \u2014 to teach younger kids about the different types of coins. You can use fun online games, like this one from Kids Math Games,<\/a> to teach school-aged children how to add money.<\/p><\/div>

3. Start using savings jars \u2014 Ages 3 to 7<\/h3>

After your kid finally understands the value of money, get them in the habit of saving any cash they get through an allowance, as a gift or when they earn.<\/p>

Opt for three separate savings jars or piggy banks for:<\/p>