How to Teach Your Kids About Money: A Simple Guide

Whether we like it or not, money and finances affect nearly every part of our lives. That’s why it is so important to teach our children the value of money, how to earn it, manage it, save it, and more. But I know that teaching kids about money can be tough! That’s why I’ve put together this guide to cover everything you need to know about teaching your kids about finances. How to Explain Money to a Child How you explain money depends a lot on your child’s age. You wouldn’t give toddlers a lecture about investment portfolios, and teens don’t need a reminder that money doesn’t grow on trees. Young Kids For toddlers up to about seven years old, the best way is to simply show them how money works. Kids learn a lot by observing. When they watch you pay for groceries or bills, they begin to understand money’s purpose. Just talking about what you are doing can help them pick up the concept naturally. Older Kids Around age eight or nine, you can introduce more complicated ideas like sa...