Teaching Young Kids About Money (and Having Fun Doing It)
If you think financial education has to wait until your kids are older, think again! When it comes to teaching kids about money, even preschoolers can start learning through simple, everyday moments. And honestly? It can be fun.
Everyday Moments as Money Lessons
My four-year-old daughter, Ruth, loves shopping at the Dollar Tree. We help her understand what it means to earn money by giving her coins for helping around the house. Once kids learn to count, they can start to understand that money makes things happen: it’s how we buy food, toys, or tickets to the zoo. When Ruth helps with chores, we talk about how that’s like “getting paid for work,” just like grown-ups, and she proudly counts her savings toward $1.33—the exact price (plus tax!) of her next toy.
When she spots a toy she wants that’s more than what she’s earned, I encourage her to take a photo of it. Then we talk about saving for it or adding it to her birthday or Christmas list. It’s a small habit that teaches patience and helps her see that we can’t always buy everything right now, even if we want to.
It’s also important for her to understand a little bit about how we spend our family money. Before outings, I like to set spending expectations. On the way to the zoo, I’ll say, “Today’s a free day — we’re bringing snacks from home,” or “Today’s a one-treat-only day.” It’s amazing how big of a difference that little bit of clarity can make. Ruth understands the plan, the limits, and the choices. And honestly, dreaming about what we’ll do with the money we save (like our next Disney trip!) keeps things fun.
How Grandparents Can Help Foster Generosity
Of course, we’re not teaching Ruth these lessons alone. Grandparents play a big role in shaping her outlook too. Their generosity boosts her savings, expands her spending options, and adds a level of excitement. When grandma takes Ruth to the zoo, they go all out—face painting, ice cream, feeding the giraffes. These treats feel special because they’re out of the ordinary, which helps Ruth appreciate the value of those experiences even more.
This special generosity can also be a great opportunity to teach kids about giving. Ruth loves helping her grandparents pick out presents for her brother and cousins. Bringing her into the process of choosing special treats or gifts for other people shows her that giving can be just as fun as getting.
We look for opportunities to give together as well. Whether it’s a dime in a church offering or a coin dropped into a grocery store donation jar, those tiny moments open conversations about generosity, kindness, and paying attention to people around us.
Growing Financial Curiosity and Confidence
Because Ruth is curious, I hear plenty of money questions throughout the week. My standard reply is, “What do you think?” It’s surprising—and pretty amazing—how much she has soaked up just by watching the way I handle money.
At the end of the day, teaching kids about money doesn’t require fancy charts or elaborate lessons. When money becomes part of everyday life, kids naturally learn to take pride in completing tasks, make thoughtful shopping decisions, and understand the value of hard work. Most of the time, they don’t need structured lessons. They just need adults willing to bring them into the real-life rhythms of earning, spending, saving, and giving.
