Financial Literacy for Kids: Teaching Money Skills from an Early Age | David C. Branch | Finance

David C. Branch
3 min readJun 21, 2023

Financial literacy is an essential life skill that can empower children to make informed decisions about money as they grow older. By teaching kids about money management from an early age, we can help them develop healthy financial habits that will benefit them throughout their lives.

Start Early and Make It Fun

Introducing financial concepts to children at a young age can lay a solid foundation for their financial literacy. Start with simple activities like counting and sorting coins, playing pretend grocery store, or using a piggy bank to save money. Incorporate games, interactive apps, and age-appropriate books that teach basic money skills in a fun and engaging manner.

Teach the Value of Money

Help children understand the value of money by assigning them age-appropriate chores and offering small allowances or rewards. Encourage them to save some of their money for short-term and long-term goals. Discuss the importance of delayed gratification and the concept of spending wisely to achieve their desired goals.

Set Up a Savings Account

Introduce the concept of a savings account to kids by helping them open their own savings account . Teach them about interest and how their money can grow over time. Encourage regular deposits and discuss the benefits of saving for the future.

Teach Budgeting and Spending Decisions

Guide children in creating a simple budget by dividing their allowance or money into categories such as saving, spending, and giving. Encourage them to track their expenses and make thoughtful spending decisions. Discuss the difference between needs and wants, and help them prioritize their spending based on their goals.

Involve Kids in Financial Discussions

Include children in age-appropriate financial discussions, such as planning a family budget, comparing prices at the grocery store, or discussing the costs of family outings. This involvement helps them understand real-life financial scenarios and develop critical thinking skills related to money management.

Introduce Basic Concepts

As children age, introduce more complex financial concepts such as interest, credit, and investments. Explain these concepts in simple terms and relate them to real-life examples. Use age-appropriate resources, online tools, and educational videos to enhance their understanding.

Lead by Example

Children learn by observing and imitating their parents or caregivers-model healthy financial habits by being responsible with money, budgeting, and making wise financial choices. Involve them in household financial decisions and discuss the thought process behind those decisions.

Encourage Entrepreneurial Skills

Foster entrepreneurship by encouraging kids to explore creative ways to earn money. Support their small business ideas like lemonade stands, handmade crafts, or pet-sitting services. This helps them develop entrepreneurial skills, financial independence, and a sense of responsibility.

Financial literacy is a critical skill that children can benefit from throughout their lives. By starting early and incorporating fun and interactive activities, we can instill in them a strong foundation of money management skills. Through practical experiences, discussions, and age-appropriate resources, children can develop healthy financial habits, make informed decisions, and confidently navigate their financial future. By teaching kids about money, we empower them to be financially responsible individuals who are prepared for the opportunities and challenges that come their way.

Originally published at on June 21, 2023.



David C. Branch

David C. Branch is a Mergers & Acquisitions Expert whose 30 years of experience in the industry see him as the Founder of Viper Equity Partners