By this age, your kids should understand that you buy things with money earned, but they’re still figuring out the bigger picture of how money works. The good news is that they’re eager to learn, especially from you. One of the biggest steps in financial education is to introduce an allowance at this age. Take advantage of the opportunities to share, teach, and experience together.
Key Money Basics for Ages 5-7
- Reinforce that money is earned by working and is used to buy things.
- Practice counting and exchanging money when you go to the store and at home during play.
- Try to use real money rather than credit cards when shopping with your kids.
Scroll below to learn more about:
- Play: Boosting money and math skills through creative play.
- Allowance: Starting a modest allowance.
- Spending: Promoting and requiring small independent purchases, with assistance.
- Saving: Encouraging your kids to begin saving for small goals.
- Banking: Discussing basic banking concepts.
- Lifestyle: Tuning into the impressions and expectations you’re setting.
- Role Modeling: Being astute of what you say and do.