Set the stage
It may seem like 3- to 7-year-olds are too young to grasp the concept of money, but introducing kids to simple financial education at an early age can have significant long-term benefits. During this crucial developmental period, there are three key concepts to focus on:
- Recognizing money: Teach them about different coins and bills, what they’re called and how much they’re worth.
- Saving money: Help them understand the concept of saving, the value of delayed gratification, and the importance of planning for the future.
- Needs vs. wants: Understanding the difference between things they need and things they want will get them in the habit of making thoughtful spending choices later on.