Teaching kids about money isn’t just about dollars and cents—it’s about giving them the confidence and skills to make smart financial decisions throughout life. Just like learning to read and write, instilling your children with the information necessary to manage their finances effectively sets them up for success in their adult lives. Imagine your child understanding the difference between a debit and credit card, setting savings goals, or navigating college costs with confidence! These outcomes are achievable when you begin with open, age-appropriate conversations.
Every child learns differently, and there’s no one-size-fits-all method. However, you can build on their knowledge as they learn to understand more and more complex concepts. Here are some ideas to get started, whatever their age.
Preschool (Ages 3-5): Keep It Simple
- Introduce basic concepts like earning, spending, and saving.
- Use a piggy bank as a hands-on tool for saving.
- Teach “needs vs. wants” during everyday activities like shopping.
- Make learning fun with pretend play using toy money, picture books about money, and educational counting apps.
Elementary School (Ages 6-10): Build on the Basics
- Explain delayed gratification and the value of saving for something special.
- Start a small allowance (weekly or chores-based) to practice budgeting and spending.
- Explain the difference between cash and debit cards, and spending only what’s available.
- Use charts or games to make goal setting engaging.
Middle School (Ages 11-13): Expand Their Vision
- Discuss saving for bigger goals like college or a car. Introduce interest and how savings can grow over time.
- Talk about advertising and resisting impulse buying, and how to be a discerning consumer.
- Explain credit cards and the importance of responsible use, and the dangers of debt.
- Explore ways to earn money beyond allowance, such as babysitting or odd jobs.
High School (Ages 14-18): Prepare for Independence
- Deepen budgeting skills with apps and tools to help them track income and both fixed and variable expenses.
- Introduce investing basics and the importance of diversification.
- Discuss college costs, financial aid options, and student loans, and encourage them to research grants and scholarships to minimize debt.
- Teach responsible credit card use and building good credit, as well as paying bills on time.
Tips to Keep Conversations Engaging
- Make learning fun with board games like Monopoly Junior or Payday.
- Involve kids in real-world tasks like grocery shopping and comparing prices.
- Utilize age-appropriate books and educational apps to reinforce financial concepts.
Talking to children about money is an ongoing process, not a one-time conversation. By starting early and adapting as they grow, you help them build confidence and develop strong lifelong financial habits. Keep the dialogue open, make learning fun, and lead by example—and don’t forget to celebrate your child’s achievements on their own financial journey!
Reach out to your D.A. Davidson financial professional if you have any questions or need additional resources as you work to raise financially literate kids.
This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2026. All rights reserved. Member FINRA and SIPC.