Financial Literacy for Kids: 10 Effective Ways To Build Good Money Habits

As parents, we know that financial literacy for kids is critical. But how do we get started? Which topics should we teach, and when?

In this post, I'll answer these questions by sharing ten ways to build good money habits in your kids. The tips and ideas will cover a wide range of financial topics for just about every age and stage.

Go Shopping Together

One of the best ways to do that is to take them shopping with you. You can then weave in financial literacy lessons by showing them how you spend less on the things you need to buy. 

Teach Your Kids How To Save

One of the most basic money skills kids can learn is how to save money. For the youngest of kids, it works best to do this in a tangible, tactile way. A fun way to do that would be to pick out a piggy bank together, then deposit money they earn, find, or receive.

Teach Your Kids the Basics of Investing

Here are some basic concepts for how to instill investing knowledge: Point out public companies they're familiar with (e.g., Disney, Mattel, Apple). Explain how regular people can buy a tiny piece of those companies.

Encourage Delayed Gratification

I firmly believe that being able to embrace delayed gratification is foundational to becoming successful with money. Through delayed gratification, kids learn to: - Develop a long-term mindset.  - Avoid impulse spending.

When your kids enter their teen years, that's a great time to teach them about retirement accounts. An ideal time would be when they start their first part-time job. Then, they can officially open and start investing in an IRA (in the US).

Explain How Retirement Accounts Work