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 below will cover a wide range of financial topics for just about every age and stage. I hope they’ll help you discover new ways to teach your kids about money.

Before we dive into the tips, let’s first define financial literacy. Financial literacy means having the knowledge and skills to manage your money successfully and confidently. Broadly, that means knowing how to: Save money Invest Avoid debt Save and plan for retirement

1. Model Good Money Habits Children constantly observe and learn from people and the world around them. Therefore, one of the best ways to instill financial literacy in kids is to model good money habits.

2. 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.

3. Teach Your Kids the Basics of Investing Kids can start learning the basics of investing from a surprisingly young age. 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.

5. Go Shopping Together This seems completely counterintuitive, right? How can shopping with kids teach them to be good with their money? Well, unless your kids plan to live off-grid in a cave, they’ll eventually need to spend money. So, why not teach them the skills to do it wisely?

6. 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. Make money decisions thoughtfully. Avoid impulse spending.

Swipe Up for More Effective Ways to Build Money Habits in Your Kids!