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Financial Education for Children

Are we all financially literate? Do we provide our children with the financial education they need? Do we show them how to responsibly spend the money their elders give them? Do we equip them with the knowledge to make wise decisions when it comes to money? Do we, as parents, encourage them to save or invest their money? From a young age, these small habits can instill invaluable values in our children. Now, let’s discuss the optimal age to start teaching children about money.

3 to 5 years old

When your child is three to five years old, accept the fact that now is the time to introduce your child to money matters. While this is an age where children are adorable, this is also the age when they understand the concept of “shopping” and “money.”

Article: 10 Best Business Books for Kids to Read

At this age, they should start developing money habits. It’s time to get to know that they need money to buy things and they have to work to earn money. If you add a fun element to this activity, it becomes easy and simple. Agree with them that if they want to get a gift like a big burger, a nice doll, or a Disney princess dress, they have to show good manners and earn points by behaving better. It can be 100 points for burgers and 500 points for princess dresses. Also, seeking their help in counting money at this age can be used to help children get acquainted with financial education.

6 to 12 years old

This is the age at which children are already attending primary or secondary school. They need an allowance. During this time, their demands grow. Things around them and their friends also influence their choices. At this stage, there is a lot of pressure on parents to cope with this burden. The school environment and the need to be socially competitive have an effect on children. At this age, they often want branded clothes and expensive stationery items. So make sure you help them understand the importance of money and finance in their growing years so that they have the ability to make wise decisions.

Book: If You Made a Million (Reading Age: 4 to 8)

Finance education for children. Book: If You Made a Million (Reading Age: 4 to 8)

This is the best time to open a minor’s bank account in your child’s name. Their own bank account will motivate them to save money. Also, encourage them to live a simple life. Remember, these incentives will help them better manage and save money for their needs as adults.

13 to 18 years old

Teens! This is the age when parents are either friends or enemies of their children. Here children are new to the world of fashion and gadgets, and they are now their best friends. With such hobbies will come significantly higher costs. This is the time to include them when your family talks about finances to make them financially wise.

Book: How to Turn $100 into $1,000,000: Earn! Save! Invest!

financial education for children. Book: How to Turn $100 into $1,000,000: Earn! Save! Invest!

At this age, your child is already preparing for higher education. Discuss financial matters with them. Explain the importance and methods of college fees, student loans, banking, credit cards, etc. This will make them aware and they will get financially vigilant. At this age, motivate them to work and to understand that there are no free gifts in life and they have to work to earn money.

19 to 23 years old

At this age, create awareness among your children about reading and understanding business ideas and business management. No matter what field your children go to, make sure they are getting aware of the basics of business and economics.

Article: How to Develop Business Skills

Financial education and training for children do not end here. When they get the first paycheck of their own hard-earned money, a piece of good investment advice from you will help them make even more money in the long run. Remember the old adage, “Give a man a fish, and he will eat for a day; teach a man to catch fish, and he will eat for life.”

Book: The Everything Kids’ Money Book: Earn it, save it, and watch it grow! (Reading Age: 7 to 12)

Financial education for children. Book: The Everything Kids' Money Book: Earn it, save it, and watch it grow! (Reading Age: 7 to 12)

The man in charge of you here is your own child. An early and small start always helps, whether it is investing or providing financial education. Your small efforts will be very helpful for children in creating self-reliance and wealth in their life.

Quick Tip: Request your bank to add your child to the authorized user list of your credit card. It will result in credit scores for your child that will be helpful for them by the time they turn 18. 


Keeping the above points in mind, we hope you understand how important it is for your children to get financial education. Not just for academic achievements, but also because financial literacy can help them become financially empowered adults. Financial issues often crop up when we least expect them, and that’s why it’s always good to have a basic understanding of finances at the right age.

In case you are yet to start educating your kids on money matters, don’t forget to use my blog as a resource.  Please don’t forget to share your feedback, thoughts, and experiences in the comment section below to help our readers raise financially literate children. 

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