Financial literacy for kids

Books can spark our imaginations, transport us to new worlds, and let us explore other times and other minds. They’re also an invaluable tool for learning. Here are some ideas to help kids of all ages learn about money and start developing their financial literacy.

Kids aged 4-6

At this age, many kids will be starting to understand that money – in the form of cards, phones, or notes and coins – can be used to buy things, but how these transactions take place may still be a little mysterious. Money-themed picture books can help to simplify financial concepts in a way that kids can relate to, exploring what money is and where it comes from, spending, budgeting, and saving, and touching on important life skills like delayed gratification, patience, knowing the difference between needs and wants, and setting goals.

Look for Sid and Jan Berenstain’s The Berenstain Bears’ Dollars and Sense and The Berenstain Bears’ Trouble with Money; Cinders McLeod’s 4-book MoneyBunny series, starting with Earn It!; and Sue Graves’ Money Matters series.

Kids 7-12

Once kids start reading for themselves, there is a range of practical activity books that can help them learn about money through games, activities and puzzles – while practising their maths skills too. You’ll also find books that cater to kids’ fascination with becoming a millionaire. David M. Schwartz’s If You Made A Million introduces the concept of interest, while James McKenna, Jeannine Glista and Matt Fontaine’s How To Turn $100 Into $1,000,000 offers financially precocious 10 to 12 year olds an introduction to finance, investing and starting a business, along with true stories of how real people became millionaires. Australia’s own Barefoot Investor, Scott Pape, has Barefoot Kids, with projects, stories, rewards and stickers to get kids earning, saving, investing and giving – many of these books discuss the importance of giving money to charity or other causes.

Teens

Older kids can start learning how to manage money for themselves through pocket money (which they may or may not need to “work” to receive) and part-time jobs. Introduce your kids to the idea of setting savings goals for the things they want, and teach them tricks and tools that make saving easier.

Teaching your children how to manage money will help them to set and achieve goals and live the life they want – even if they don’t make it as a 12-year-old millionaire.

Source: TAL