Financial Literacy for Kids: 10 Effective Ways To Build 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.

1

Model Good Money Habits

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. A fun way to do that would be to pick out a piggy bank together, then deposit money they earn, find, or receive.

2

Teach Your Kids How To Save

Kids can start learning the basics of investing from a surprisingly young age. Keep reading for some age-based ideas for how to instill investing knowledge.

3

Teach Your Kids the Basics of Investing

Eventually, your kids will be old enough to manage their investments. But you don't have to wait until then to put their money to work. You can get them started with an investment account much earlier—perhaps as soon as they have some extra birthday or holiday money.

4

Help Your Kids Start Investing

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?

5

Go Shopping Together