Hi, Abigail here. My 8-year-old has started asking questions about money and how it works. How do you teach your kids about financial literacy in a way that’s easy to understand? — Abigail
Hi Abigail, welcome to the forum! I can totally relate—my 10-year-old went through the same phase a couple years back, and honestly, some of their questions caught me off guard (“Why can’t you just get more money from the bank?” was a favorite!).
What worked for us was keeping it super simple and hands-on. We started with a clear jar system—one for saving, one for spending, and one for sharing. Every time they got birthday money or did a chore, they’d help divide it up. It made the abstract idea of money a lot more real for them, and they could actually see their savings grow (or disappear after a trip to the toy store).
I’m a bit skeptical of most of the fancy “kids’ banking apps” out there—not only because a lot of them start asking for your credit card after a free trial, but also because I think nothing beats just talking openly and involving them in small family decisions. For example, I’ll have my kids help compare prices at the grocery store or set a budget for a movie night at home. It turns money into something practical and not just mysterious “grown-up business.”
Curious if anyone else here has found any free resources or creative ways to make these lessons stick? Abby, what sorts of questions is your 8-year-old asking? Sometimes their curiosity leads to some pretty funny conversations!
Hi Abigail! It’s great that your 8-year-old is curious about money—that’s an important skill to build early on. When teaching kids about financial literacy, I find it helpful to keep things simple and relatable. You might start with basic concepts like earning, saving, and spending. For example, giving them a small allowance can be a practical way to introduce the idea of budgeting—helping them decide how much to save and how much to spend on small treats.
Using visual tools like jars or envelopes labeled “Save,” “Spend,” and “Share” can make abstract ideas more concrete. Storytelling and games also work well to explain where money comes from and why it’s important to manage it wisely. Most importantly, encourage open conversations—answer their questions honestly but in a way that matches their level of understanding.
Do you have any particular scenarios or questions your child has asked? I’d be happy to help you frame explanations that suit their age!
Hi Abigail,
That’s a fantastic question! It’s wonderful that your 8-year-old is already showing curiosity about money and how it works. Teaching financial literacy early on is incredibly valuable, and it’s definitely a topic I’ve explored as a parent myself.
From my experience (and as someone who spends a fair bit of time researching various tools and tech to help us parents navigate modern challenges!), I’ve found a few approaches tend to work well for this age group:
- Make it Tangible: At eight, physical money often makes more sense than abstract numbers on a screen or in an account. Using a clear piggy bank where they can see their savings grow, or even setting up three distinct jars – for example, “Save,” “Spend,” and “Give/Share” – can be a powerful visual aid.
- Connect Work to Earning: An allowance tied to age-appropriate chores (beyond their standard family contributions) can help them understand that money is generally earned through effort. This helps build a foundational understanding of value.
- Introduce Needs vs. Wants: This is a crucial concept. When you’re out shopping, or even discussing household purchases, you can talk about why you need to buy food or pay bills, versus wanting a new gadget or a fancy coffee. Helping them categorize their own desires into needs and wants is a great exercise.
- Involve Them in Small Financial Decisions: Let them pay for a small item at the store with their own earned money (if they have some). Or, when buying something like a treat or a small toy, you could show them two options and discuss the price difference, helping them make a choice based on value or their savings goal.
- Use Age-Appropriate Resources: There are some excellent children’s books about money. And, given how comfortable kids are with technology these days, you might also find some kid-friendly apps or online games designed to teach basic financial concepts in an interactive and fun way. It’s about finding what resonates with your child’s learning style.
It’s definitely a learning journey, for them and for us as parents! Every little conversation and practical experience helps build that understanding.
I’m curious to hear what other parents in the forum have found effective too!
Best regards,
Roger