You want to raise a financially savvy kid, but talking about money can feel overwhelming. We've broken down common parent questions into four age groups: preschool, early elementary, tween/early teen, and teen — and answered them with practical tips, simple explanations, and smart ways to teach kids about money. We're here to help make family money conversations easy and effective.
Preschool
Ages 3-5
At this age, kids are just beginning to understand the world around them — and money is no exception. Keep it simple and hands-on by starting with money, real or fake, both coins and bills. Let your child hold them, name them, and notice the differences in size, shape, and color.
Let your little one start a small collection of real coins and bills. A clear piggy bank or jar is a great tool that helps them see and recall the different types of money, in addition to watching their savings grow over time. Even dropping coins in the jar becomes an exciting ritual that makes money feel real, and kids will love the clanking of the coins against the jar. Think of this stage as exposure, not mastery. The goal is to make money tangible in small, playful ways.
Everyday moments are the best teaching tools. When you pay at the store, talk through what's happening: "We give money to the cashier, so we can take our groceries home." Narrating these simple exchanges helps them connect money to its purpose.
At home, you can set up a pretend store with toys or pantry items. Many kids like toy cash registers at this age, to pretend to make an exchange with you. Let your child "buy" and "sell" at home.
Saving at the preschool stage is less about dollars and more about patience. Explain that saving means waiting for something you want. For example, "If we put your coins in the jar today, we'll have enough for that book you want by next week."
Make it visual and fun: The clear piggy bank helps, and children's books like Bunny Money or A Chair for My Mother reinforce the lesson through stories. Create a calendar to count down the days and the money saved toward their milestone purchases. These small, consistent moments help your child understand that saving isn't just about money — it's about waiting and planning.
Yes — gently. This is a natural age to begin showing them that money has limits and that different things cost different amounts. For instance, you might say: "We're getting ice cream today, but that means we won't be buying a toy right now." This helps kids understand that choices have trade-offs.
You can also set expectations around gifts. Many families find that one meaningful gift, plus something to read, wear, or play with, keeps birthdays and holidays joyful without overdoing it. Keeping conversations light, but consistent, helps kids see that money decisions are part of life — and that "no" doesn't mean "never" if you learn how to save.
Not at all! Preschoolers may not grasp the full picture, but they can start to learn that grown-ups work to earn money. You might say, "Mom goes to work to help earn money, so we can buy food and toys." Connecting the dots between effort and money lays an important foundation for later years.
Keep the explanation simple and tied to what they can see in daily life. At this stage, the seed you're planting matters more than the details.
Even while your preschooler is learning the basics, you can take meaningful steps to prepare for their future. Consider opening a 529 college savings plan. Friends and family can even contribute in honor of birthdays or milestones — a gift that keeps growing over time.
Taking these early steps shows your child that saving for the future is important. It also models the kind of thoughtful planning you're hoping to teach them.
Early Elementary
Ages 6-9
By now, your child is ready to start seeing money as more than just coins in a jar. Like the jar, a bank can be explained as simply another place to keep money — and sometimes, it even helps your money grow.
Next time you visit our branch or make a deposit, bring your child along and explain what's happening. Letting them watch the process — or hand over a few dollars themselves — makes the banking experience real and less mysterious. This is also a great age to consider opening a starter account, so they can watch balances grow and connect the dots between saving and earning.
This age group loves asking questions, which makes it the perfect time to start talking about choices. Wants and needs are an easy place to start. A need might be food for dinner. A want might be ice cream afterward.
You can keep it simple and consistent by talking through real examples. "We're buying new shoes because yours don't fit — that's a need. The sparkly pair you like is a want." These small conversations help kids start to see that money has to stretch across both needs and wants — and that we can't always say "yes" to everything.
Kids in this age group are naturally curious about where money comes from. Keep it straightforward: People have jobs, and they get paid in exchange for their work.
This is a great age to start an allowance. Many families use a simple formula like $1 per week for each year of age. Some parents tie it to chores; others keep chores separate, and give allowance as a tool for learning. If you use a chore chart, you can separate expected tasks (like tidying up) from extras that earn money (like washing the car). This helps kids see that money is connected to effort and value.
By now, your child has probably noticed that not all money looks like coins and bills. This is the time to introduce the idea that we also pay with debit cards, credit cards, and even apps. To kids, tapping a screen can feel invisible — so it's important to explain that there's still real money being spent behind each tap or swipe.
When possible, let your child hand over cash at the store. It keeps the concept concrete while they begin to understand the digital side. If you want to use a card, have them hand it over to you in exchange for the card purchase, so they understand real money is exchanged. You can even go as far as depositing their allowance in a bank account before charging your card to see the process through fully. On devices, use parental controls for in-app purchases, and explain why: "Tapping this button would spend real money, so we set limits to be careful."
This is the perfect age to introduce the idea of "money buckets." Some money is for saving, some for spending, and some for sharing. Try using three jars or envelopes so kids can divide allowance or gift money into each category.
Make saving exciting with visuals: a sticker chart or tracker that counts down toward a toy, book, or game they want. When they reach their goal, celebrate it together — the achievement matters as much as the item. Sharing also becomes more meaningful if you let them pick a cause they care about, like animals or the environment. These early habits build a sense of balance around money.
Kids this age notice. They'll see that some friends get new gadgets or take big trips while others don't — and they'll want to understand why. Instead of saying, "We can't afford it," try: "That's not what our family is spending money on right now — we're saving for X instead." This keeps the focus on choices, not limitations. You can also tie this back to understanding savings for wants versus needs.
Modeling is powerful, too. Say things out loud, like, "I brought lunch from home to save money today," or "We decided to spend less on clothes so we can save for our vacation." These simple statements show your child that every family makes choices, and that's OK. The more you normalize these conversations at home, the more confident they'll become in talking about money themselves.
Tween / Early Teen
Ages 10-13
Helping your child feel empowered about their finances is an incredible gift. You want your kids to see that budgeting is about choices and priorities they get to make, not just restrictions put on them. Share that budgeting is really just about deciding how money gets used. Some dollars buy fun things now (like snacks or games). Others help us save for bigger goals (like a bike or a trip). And some dollars get the job of helping others through giving.
Real-life examples can help bring needed context to the conversation — and they can help your child understand your family's approach to money. "We cook at home more than we eat out, so we can take family trips. "Give your tween a chance to try by budgeting allowance or birthday money. Jars, envelopes, or a spending tracker app can make it fun and visual. As they grow, give them more chances to plan — like setting a snack budget for a sleepover or comparing options at the store. As they become comfortable, they can plan for a larger expense, such as a weekend trip or saving for a first phone.
Your tween is at an age when they may start requesting bigger-ticket items. Good news: it's also a great age to introduce the idea of sharing the cost. When kids pitch in — whether it's toward a phone, fresh new sneakers, or a special outing — they can start to understand the value of a dollar more deeply. Some families opt to split the cost of a first phone or a gaming console, or ask a tween to cover the cost of accessories or repairs.
Even a small contribution makes them more thoughtful about what they're asking for and more careful with what they own. Beyond boosting responsibility, a kid's contribution also sends the message that money doesn't just appear. Framing it as teamwork ("We'll cover this part, you'll cover that part.") helps them feel capable, not punished. Be sure to share in advance what the expectations are — a parent or guardian covers the first phone repair, but future ones are on them, for example.
These early experiences with shared responsibility prepare them for bigger things later, like managing subscriptions, saving for college, or handling a paycheck.
As your tween starts to stretch their independence, it's also a chance to help them begin flexing their earning muscles. At home, consider negotiating the rate of pay for specific chores or talking about an all-in allowance approach. Many tweens also start acting as parent helpers by babysitting, mowing lawns, walking dogs, and sitting for pets or plants. Whether in the home or in the neighborhood, they'll enjoy a taste of real-world earning.
Many families follow a variation on a simple rule: Spend some, save some, give some. You can decide the percentages each category gets! Saving builds patience, giving builds empathy, and spending keeps it fun. Open a starter bank account so they can watch their money grow and set goals.
Talk about what they care about or are concerned about, and research charitable giving options. Some parents opt to match their kids' donations. Consider celebrating milestones, like reaching a savings target or donating a goal amount to a cause they care about.
Building good financial habits now helps kids see money not just as something to spend, but as a tool for shaping their future — and making a difference in their community and causes they care about.
While previous generations handled money regularly and learned to balance a checkbook physically, today's kids rarely see cash exchanged or watch their parents write a check. Digital transactions can make money feel abstract or like meaningless numbers on a screen.
Now is a great time to involve your tween in the digital side of finances. Set up a simple checking or savings account for your tween, and show them how deposits, withdrawals, and debit cards actually work. Help them track balances, spot patterns in spending, or set alerts for goals. Moving from a piggy bank to a bank account gives them practice with the same tools they'll use as adults.
You can also make it fun: Before buying groceries, ask them to guess the total, then compare with the receipt. This helps them connect numbers on a screen with real-world costs. If your child has or is getting a device, pair it with a discussion about subscriptions and in-app purchases — reminding them that every tap is meaningful. The goal isn't to overwhelm, but to make digital money tangible and to help them practice financial skills in the same world they're growing up in.
At this age, kids definitely notice who has the newest sneakers or phone, who has fancy houses and cars, or who takes big vacations. They may be acutely aware of what their peers have or don't have. It can feel uncomfortable to talk about, regardless of your family's unique situation. Instead of brushing it off or avoiding it altogether, recognize the importance of talking through complex or challenging topics and normalizing talking about money. This is an excellent opportunity to discuss values and choices.
Explain that every family makes different choices and has different resources available to them. Maybe your family saves for travel instead of upgrading cars. You may rent instead of owning. You may be paying off student loans that helped advance your career or saving for their college experience. Help them see that money is about priorities, not just possessions.
Encourage empathy, too — not every friend has the same opportunities or resources. These conversations build perspectives and comfort with complex topics. Wealth isn't only about stuff. It's also about experiences, flexibility, security, and values. When kids understand trade-offs, they're less likely to compare and more likely to feel good about what they've got. They can also grow more confident in their ability to plan in the future. By discussing these issues more openly, you help your tween navigate envy, avoid entitlement, and develop a more balanced perspective. Over time, they'll learn that financial health isn't just about having the newest things — it's about making choices that reflect your values, give your teen flexibility, and create long-term security.
Teen / High School
Ages 14+
College costs can feel like a giant, but mysterious price tag. The best approach is to be open and start discussing it early. Share the real costs, including tuition, food, books, healthcare, and transportation. You may also have to factor in some future planning — (Does your child imagine going to grad school?).
Be open about what savings, scholarships, or financial aid might cover, and what you expect from your teen. Teens need to know if you expect them to contribute through part-time work during the summer, throughout the school year, or while in college.
Help your high-schooler research scholarships and understand the difference between grants and loans. Many colleges offer robust college planning resources, so you don't have to do it alone. What trade-offs can they consider? Would they be open to attending a community college first, living at home versus on campus, or choosing between public and private schools?
Don't just talk numbers — show them, especially around student loans. Pull up an actual tuition bill or loan repayment calculator and walk through examples that help them see the long-term impact — like how a $200 monthly loan payment might affect future rent or car choices.
College is a financial choice as much as an academic one. Keep connecting conversations back to your family's priorities. Framing it this way turns the conversation from "What can we afford?" to "How do we make this decision wisely together?"
Now's the time to introduce credit, compound interest, and investing to your teen. Knowing how borrowing, credit scores, carrying credit card debt, and long-term investing work will give them a considerable head start and a boost of confidence as they step into adulthood.
Credit can feel very abstract, but credit card and buy now / pay later (BNPL) debt can be crippling. It isn't just about swiping a card, getting something now, and paying that cost over time. A responsible teen can be added as an authorized user on your credit card, which allows them to start building history while you keep a watch. Be sure to communicate clear rules around card usage. Show them how paying on time and keeping balances low matters. Help them see how paying only the minimum on a balance can lead to longer, more expensive repayment cycles. This prevents surprises and fosters habits that protect them from debt spirals.
Move into investing with the power of compound interest as the hook. Teens love hacks, and compounding is the ultimate money hack. Show them how investing $50 a month at 16 grows to way more than it would if they started at 26. They don't need a stock market deep dive—just the big idea that time and consistency are powerful. If they've got a job, talk Roth IRAs and how retirement actually equals freedom. Framing these concepts as ways to buy choices later in life makes it click.
Lifeguarding, scooping ice cream, or working in retail — a first job is exciting! A first paycheck is, too, but many teens expect it to be bigger. It's a great time to discuss their W-2 and pay stub to see gross pay versus net, taxes, Social Security, and Medicare.
Encourage them to keep pay stubs and organize records online or in a secure place. Help them set up systems like direct deposit and automatic savings, and plan for spending, saving, and giving buckets. Help them set goals, such as covering gas or saving for college, and occasionally treating themselves to something fun. Ask how they can plan to spend, based on seasonal summer employment. If they work all school year, what does that look like?
The goal is to make saving a habit, not an afterthought. If your teen blows their first paycheck on fast food and shoes, it's OK. Small money mistakes now build the financial muscles they'll need when the stakes get higher.
A job teaches time management, conflict resolution, customer service, and accountability — skills that matter just as much as the money earned. Celebrate their first paycheck, but also guide them to reflect on what the experience is beyond the money. Was the job worth their time? What did they learn? Having these conversations early lays a strong foundation for both financial and professional growth.
Come tax time, sit down together and go through their first tax return. It'll probably be simple, but learning the process now builds confidence for the future.
The freedom driving brings also brings financial responsibilities and meaningful family conversations that can easily be overlooked in the excitement of getting a license. Now's the time to connect the dots that driving is fun and isn't free.
Decide as a family what role your teen will play in new expenses. Beyond the car itself, there's insurance, gas, registration, maintenance, and repairs. Perhaps they have access to a family car, but they will cover the gas and split the insurance bill. If they want their own car, will they need to plan to contribute toward the purchase? If you're buying a car, walk through how financing works and the trade-offs of new vs. used, loan vs. cash, and higher insurance for a sports car vs. lower costs for something practical.
Even modest contributions help a teen appreciate that driving is a privilege. Link the responsibility of safe driving to financial responsibility. Accident or traffic citations not only risk safety, but they also raise insurance premiums for years. Ask yourself: Will having access to a car come with expanded duties at home? Can your teen run errands, or, once you're ready, give siblings a ride?
When teens have a stake in the costs — from the start, or being responsible for moving violations or increased insurance premiums after an accident — they may be motivated to drive more carefully and make wiser choices.
Money talks can be empowering, and they may give you a chance to connect with your teen to learn about how they see the world. Share how you determine your priorities so they see spending as a reflection of values, not just keeping up. Involve them in decisions and ask about their priorities. (Would they rather save for a car or spend on concerts?) Share how you've made choices and some mistakes! These talks ground them when others have flashier stuff and help them prep and plan for bigger choices ahead, like picking a college or first apartment.
Celebrate smart decisions, and let them learn from more minor mistakes now, rather than bigger ones later.
Encourage them to picture their future: moving out, renting an apartment, traveling, buying a car, and even retirement. Show how today's choices connect to those milestones. By graduation, your teen will have plenty of hands-on experience to build confidence and competence for adulthood.