Making money an open topic of discussion at home is one of the simplest ways to set your kids up for success.
The more they know about how money works early on, the better equipped they’ll be to make smart choices about saving, budgeting, managing debt, and staying on top of their money as they get older.
Teaching your kids financial literacy doesn’t mean having a deep, sit-down conversation. It means meeting your kids where they are, and it’s not too early to start. Here are some age-appropriate money lessons you could start teaching now.
Little Kids (Ages 3-7): The Bartering Phase
Money lessons start younger than you think.
As soon as your child starts to understand the idea of exchanging something they have for something they want, they’re already on the right track to start learning. They may already be doing this with stickers, candy, chores, or toys.
The concept of trading for a reward is already starting to root through their everyday experiences. This is a great time to start introducing money concepts.
During this bartering phase, trade a completed task, like picking up their toys, for a small reward. Keep it fun and low stakes when they are small. The goal is to get them familiar and comfortable with the economics of exchanges.
From there, you could build their skills by allowing reasonable negotiation without shutting them down outright. Engage with them, talk through what does and doesn’t work, and learn what they find value in.
Elementary Kids and Tweens (Ages 8-13): Allowances, Chores, and Savings
Allowances and Chores
Implementing allowance or chore strategies can help build on these skills you started in the bartering phase.
Understanding the ebb and flow of money is a valuable skill they can take into adulthood.
An allowance or pay for chores can help kids learn the connection between effort and reward and get real practice managing money in smaller amounts first. This could be as little or as much as you feel is reasonable for your family.
Tip: If you’re concerned about paying kids for chores you consider daily life skills, consider offering small payments for chores outside of your regular expectations. Maybe you wouldn’t offer compensation for picking up their toys since that’s an everyday task, but you might for picking up sticks from the yard, washing windows, sorting their toys into keep and donation piles, or other age-appropriate options.
Teaching Kids to Save
As soon as money comes into the picture, savings should be brought up. You don’t have to overhaul anything.
For young kiddos, money is abstract. That’s why making it something they can touch, see, and count is key.
Use coins and cash instead of cards when you can. Use a savings jar or piggy bank so they can watch their money grow.
If you are hoping for a more secure place for their money, help them track their earnings on paper or with stickers, and open a savings account for them to store the money instead.
As your local credit union, Centris makes it easy to get started with the Rafferty Club savings account built specifically for savers 12 years and younger. With an account, they can see their balance in real time and learn the value of safely storing money with a trusted institution. Plus, taking the kids to a branch may help them see that their money is safe with bankers who are here to help them.
When they start earning money through allowances, chores, or even birthday card cash, introduce the idea of Pay Yourself First. Teach them that savings come out first. If they have $10, consider having them put $1 or $2 into their savings jar or account if they have one. Remind them that if they continue to do this, they will see the amount of money they’re saving grow over time.
To give savings more value to them, you could offer them the chance to save for a big toy or experience and keep track of their progress toward their goal. If they have a goal, they may even consider putting more of their money into savings to reach the goal more quickly.
Teens (Ages 14+): Implementing Digital Skills and Big Conversations
With tap-to-pay and person-to-person payment apps, using physical cash is increasingly rare. Since your kids cannot see the money in their hands, it’s easy to lose track of their spending. Getting your teen set up with a checking account with a debit card before they leave home gives them the chance to learn to manage their money online.
But managing digital money comes with a responsibility that goes beyond budgeting. It requires digital safety, too. Fraudsters are now using AI to craft convincing, error-free scam messages, so teach your teen not to share passwords and always verify requests for financial information through official channels.
If they have a part-time job, encourage creating a simple budget that implements saving while also tracking their spending. Before they go out into the world, it’s also important to talk about the roles that credit, interest, and borrowing play in their success as well. Open and honest conversations are important to pair with their real-world experiences.
Start Building Your Kids’ Money Habits Now
No matter your child’s age, the most powerful financial lesson they’ll learn is by watching you. Talk about money openly, share your decision-making out loud, and let them see budgeting as a normal part of everyday decision‑making.
Need help getting started? We’re here for you:
- Visit a Branch — Stop into one of our locations to speak with a financial expert in person.
- Free Educational Tools — Learn budgeting and saving strategies at your own pace through our free Centris Financial Education Center, Enrich.
- More Tips for Little Learners — Check out more tips for teaching your kiddos about money in our financial literacy for kids blog here.
- Summer-Focused Learning for Kids — Take advantage of your time with the kids in the summer and try out these money lessons.
Federally Insured by NCUA
