How to Teach Kids About Money: Tips and Examples By Age
Research from Cambridge University shows that children begin forming money habits by age seven, and early experiences with saving and spending create patterns that persist into adulthood. Practical strategies can be used at every stage to teach kids about money, from using physical coins to introducing an allowance and the three-jar method.
Children start forming money habits by age seven, according to Cambridge University research. Early experiences with saving and spending create long-lasting patterns. For children aged 3-5, introduce the basics of money using physical coins and bills, and play store or restaurant games to teach the concept of exchanging money for items. A clear jar can be used to show savings growth. For children aged 6-9, introduce an allowance and use the three-jar method to teach saving, spending, and giving. Divide allowance money into Save, Spend, and Give categories. A financial advisor can help families set up custodial accounts and savings plans as part of a broader strategy to build financial literacy.
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