Have you ever wondered when you should start talking to your kids about money? How can you know what they will understand at each age? If these questions have crossed your mind, you’re not alone! I had the opportunity to speak with Agata Diu, a financial educator with over a decade of experience teaching children about money, to find out when, how, and what we should teach our kids about money in a way that makes sense to them.
Why Start Early? The Importance of Financial Education
Did you know that nearly half of parents miss the opportunity to talk to their kids about money and finances? According to a survey by T. Rowe Price, many families delay these conversations, often unsure of where to start. But Agata reassures us: It’s never too early!
Even children as young as three can begin understanding basic financial concepts. It can be as simple as letting them pay at the store, watching you withdraw money from an ATM, or saving small amounts in a traditional or digital piggy bank. These small, hands-on experiences lay the foundation for good financial habits in the future.
it is never too early to begin talking about money with children
Setting the Example: How Your Habits Shape Your Child’s Financial Future
Let’s be honest—our kids watch everything we do! They absorb our habits, including how we manage money. Have you ever thought about your own financial behaviors? Are they habits you would like your child to imitate?
During primary school (ages 6 to 11), when children are learning to count, add, and subtract, they can start learning about money through everyday experiences. A great way to teach them is to help them budget their money between what they spend and what they save. You can use two jars from your kitchen—one for saving and one for spending. Or, you can opt for CoinKids’ digital jars, where children can distinguish between saving for something special and using money for small daily treats.
Another simple but effective strategy is involving them in daily budgeting. Let them help you make the shopping list, compare prices at the store, or look for discounts. These small tasks teach the value of money in a natural and fun way.
Don’t forget that your actions affect your children’s financial mindset!
Developing Financial Skills According to Age
As children grow, their understanding of money deepens. Please encourage them to set small financial goals, like saving for a toy or a special outing. When they reach their goal, celebrate it together! This reinforces the idea that saving is worthwhile and builds their confidence.
For example, with CoinKids, our save now, buy later app, children can create a savings goal and celebrate each milestone until they reach their target.
Want to take it a step further? Introduce the concept of earning money. Assigning small household chores in exchange for a reward can teach them the connection between work and financial compensation.
Navigating a Cashless World: Teaching Kids About Digital Money
Let’s face it—our kids are growing up in a digital world. They are more likely to see us pay with a card or an app than handle cash and coins. So how do we teach them about money when everything is digital?
There are now fantastic tools like the CoinKids app, which provides a safe way for children to manage their money digitally. Instead of searching for loose change under the couch, parents can send their kids an allowance with just one click. Kids can also set savings goals, track their progress, and experience the satisfaction of reaching their financial targets.
Another great option is opening a bank account for kids. Some banks offer special accounts designed to help children practice money management under parental supervision.
Final Thoughts: Making Money Conversations Part of Everyday Life
Talking about money shouldn’t be a one-time conversation—it should be an ongoing dialogue integrated into daily life. Whether counting coins, making spending decisions, or using a budgeting app, each small step helps build our children’s financial confidence.
So, when is the right time to talk about money? The answer is simple: start now! The sooner we help our kids develop a positive relationship with money, the better prepared they will be for the future.
What financial lessons have you taught your kids? Share your experience in the comments—I’d love to hear your thoughts!
