As educators and parents alike, we are largely focused on teaching children fundamental academic and social skills to help them thrive in- and outside the classroom. At the same time, however, we should also focus on helping them develop important financial and money management skills. After all, many money habits are already set by age seven. By forming and practicing healthy money habits early on, you can prepare children for a lifetime of financial well-being.
Below we’ve shared key financial milestones that children should reach at certain ages. While many of these lessons will begin at home with their parents, educators can reinforce them through engaging activities, meaningful discussions and role modeling.
Yes, even 3-to-5-year-olds can learn the value of money. At this age, they are just beginning to understand that you need money to buy things and that you earn money by working. This is a great time to teach children about delayed gratification and that there’s a difference between the things you want and things you need.
Some of the financial goals and milestones of this age range should include:
Read How To Teach Students To Be Financially Responsible to Learn More.
This is the perfect time to teach and reinforce money management skills. The lessons they learn now will likely stick with them into adulthood. Children this age understand how money works, and they may even start earning an allowance. During this time, most will also begin to notice the cost of different items, while also becoming more aware of advertising targeted at them.
Some financial milestones include:
The tween years are a momentous time for young people, and they bring important financial lessons and challenges. They will begin to make more independent financial decisions, as they may start to earn their own money outside of the home. With this comes a greater responsibility to smart money management, in addition to understanding how their financial habits can have an impact on others.
A few important financial milestones at this age include:
Check out 4 Online Resources For Developing Financially Savvy Students For Activities to Try.
From here, these young adults will begin making financial decisions that can impact their future. They may obtain their first job, explore their college and career options and even consider opening a credit card. This is a great time to reinforce important skills - like budgeting, saving and delayed gratification - while teaching new concepts such as credit management, taxes and investing.
Some financial goals for this age group include:
By promoting financial literacy early on, you can play a major role in helping children become financially secure and responsible adults. Use this information as a guide to help them make the right money decisions now and in the future.