If your child is 3 to 7 years old
At this age, kids begin to understand the mechanics of money: You hand it over and get something in return. Build on their
budding knowledge with these tips.
Money Lesson 1: Tap into their natural curiosity.
- Go over the basics. Explain how parents earn money and put it in the bank to pay for food, clothing and housing. Talk to your children about the ways you use money―spending, saving, investing and donating to charity.
- Show the value of money. Pick an item your kids enjoy and put a dollar amount on it. If they like to go out for ice cream, explain that each cone costs $2. Record how how much you’ve spent on ice cream over a the course of a month. This helps them see the cost of consumption over time.