In today’s ever-changing financial landscape, it’s more important than ever to prepare kids with the financial skills to manage their money wisely and help them develop healthy financial habits that will last a lifetime.

Resources for parents and caregivers

You don’t have to be a financial expert to equip your kids with financial skills. In fact, there are excellent resources available for free online — like this resource library from the Consumer Financial Protection Bureau (CFPB). The CFPB has a dedicated Money as You Grow website designed to offer tips, activities and more to parents and caregivers to help build children’s financial skills.

Financial skills by age

Elementary school

Children are naturally curious and eager to learn, especially in the early years. This is the perfect time to introduce basic financial concepts, including:

• Understanding money: Teach children the different denominations of money and show them how to count it. Use play money or real coins and bills to make it interactive.
• Saving basics: Introduce the concept of saving by using a piggy bank. Encourage kids to save a portion of any money they receive.
• Needs vs. wants: Help children distinguish between necessities and desires through simple discussions and practical examples.

Middle school

The preteen years are a great time to build on their foundational knowledge of money. Start moving on to more complex concepts, including:

• Household budgeting: Teach kids how to create a simple budget. Show them how to allocate money for savings and spending. Increase their understanding of real-world prices and how much things cost for your household.
• Understanding banking: Open a savings account for your child and explain how it works. Show them how to track their balance and aim for an attainable savings goal, such as buying a new game or toy.
• Smart spending: Introduce the idea of comparing prices and looking for value. Discuss how to make thoughtful purchasing decisions.

Find more ideas for kid-friendly financial activities.

High school

Teenagers are on the brink of adulthood, so you need to prepare them for real-world financial responsibilities. This is the time to move on to more advanced financial concepts, including:

• Advanced budgeting: Teach teens to manage a more detailed budget, including income from part-time jobs and expenses like phone bills or car insurance payments. New to explaining budgeting? Start here.
• Credit education: Explain the basics of credit scores and how to manage credit responsibly. Discuss the importance of building a good credit history with good credit habits.
• Understanding interest: Help your teen understand how compounding interest works, related to potential debt and retirement savings.

A responsible financial outlook will help young adults through each new phase of life. They will encounter financial tasks along the way — things like understanding the terms of a rental lease agreement, opening a credit card, comparing auto insurance quotes and more. Teaching financial skills to kids is one of the greatest gifts we can give them.

For more tips and resources, visit our Education page.

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• General Education