In 2022, an Ipsos poll conducted on behalf of Money Masters revealed a startling fact: approximately one in three Americans (36%) are not financially literate. While financial literacy improves with age, it's essential to start early and instill good financial habits in children that will last a lifetime.
Teaching kids about money not only gives them a head start in life, but it also helps create future financially responsible adults. Financial education is a crucial skill, and giving children the right tools can set them on the path to success.
Whether it's saving for their first bike or understanding the value of money in a broader sense, kids need structured financial education to develop a strong foundation. Learn more about the importance of financial education and check out these 10 educational resources to make teaching money skills engaging, effective and fun!
Why is financial education for kids important?
Financial literacy is essential for building a strong economy and equipping individuals to navigate life's challenges. Learning how to manage money responsibly provides kids with a solid foundation to make sound decisions as adults. They are better able to understand how to earn, save, invest and give back.
Early financial education offers kids an advantage, especially when it comes to complex decisions like applying for a credit card, buying a car or saving for college.
There are many benefits to teaching kids about money, including:
- Understanding the value of work and money
- Learning the importance of budgeting and prioritizing needs over wants
- Developing responsible saving and spending habits
- Preparing for unexpected expenses
- Gaining confidence in financial decision-making.
Teaching children to budget, invest and save ensures that they can handle financial responsibility long before they face important financial decisions.
Focus Areas for Financial Literacy in Kids
Teaching kids about financial literacy involves several different focus areas, depending on their age and stage of development. It's important to adjust lessons so they're relevant and age-appropriate.
Here are some key concepts:
- Investing: Kids should understand how investing works, even in simple terms. Teaching children how to grow their money through safe investments helps them see the value of delayed gratification and the power of compound growth.
- Taxes: Kids need to learn that with income comes the responsibility of paying taxes. Teaching kids how taxes work helps prepare them for managing their finances in adulthood.
- Savings: Whether it's saving up for a toy or something more significant, learning to save teaches kids patience and financial discipline. Building a savings habit early on prepares them for future expenses, both planned and unexpected.
- Budgeting: Budgeting teaches kids how to differentiate between needs and wants. It also helps them understand the importance of prioritizing spending and making the most of their money.
10 Resources To Teach Your Kids About Money
Whether you're a parent or an educator, there are a variety of tools and resources available to help you teach these concepts in a way that's engaging and fun for kids.
For money lessons with a side of humor: Financial Fitness Fairy
Our award-winning series, Financial Fitness Fairy, offers an entertaining approach to teaching kids and families about managing money together. The Financial Fitness Fairy uses humor to deliver important lessons about responsible spending, fraud prevention and the value of saving. Perfect for children and parents alike, these videos offer lighthearted yet educational content.
Visit our YouTube channel to watch the Financial Fitness Fairy series today! It's a great way to introduce financial topics to your kids while enjoying a few laughs.
For teaching your kids about money on the go: Million Bazillion podcast
The Million Bazillion podcast is designed to answer some of kids' biggest money-related questions, ranging from topics like how credit cards work to why there is so much gold at Fort Knox.
Host Jed Kim invites special guests, including money experts and celebrities like Kristen Bell and LeVar Burton, to help break down complex topics in a way that's accessible for kids. Whether in the car or at home, this podcast makes learning about finances accessible and fun.
For parents who are nostalgic about The Oregon Trail®: Hit the Road
Presented by the National Credit Union Administration, Hit the Road is a financial literacy game that feels like a modern take on the beloved classic, The Oregon Trail®. Kids embark on a virtual road trip where they must manage their budget to cover expenses like gas and food while avoiding financial pitfalls.
Through this interactive game, kids learn the basics of budgeting and financial decision-making in a fun, familiar format. Hit the Road is free and a great bonding activity as kids learn the importance of responsible spending alongside their parents.
For those who'd rather live on Sesame Street: Sesame Workshop
Created by the producers of the PBS hit show, Sesame Workshop is a nonprofit organization that helps children everywhere grow smarter, stronger and kinder. In their Financial Education corner, kids can learn from friends like Elmo and Cookie Monster about the basics of money management.
Through videos and activities, children learn how to create a spending plan, understand the difference between wants and needs, and navigate conversations about tough financial times. This resource is perfect for younger children who are beginning to learn about money in a familiar and engaging way.
For teachers who want to teach financial education: Money Smart for Young People
Money Smart for Young People from the Federal Deposit Insurance Corporation is an excellent resource for educators and parents wanting to teach financial literacy. This program offers free, age-appropriate curricula designed for children from pre-kindergarten through grade 12.
Money Smart provides ready-made lesson plans, interactive games and educational videos, making it a valuable resource for classrooms and homes alike. Topics are broken down by age level so you can teach the right lessons to the right age groups. Lessons cover a wide range of topics, from identifying coins for younger students to building credit and managing a paycheck for older teens.
For Khan Academy lovers: Financial Literacy by Khan Academy
From the beloved online tutoring site, Khan Academy's Financial Literacy and Personal Finance courses walk kids through critical financial topics. The platform covers a wide range of financial topics, from understanding online scams to learning about investments and retirement planning.
With video lessons and quizzes, kids can explore significant financial concepts in a structured, easy-to-follow format. Whether used as part of a homeschool curriculum or for supplemental learning, Khan Academy's financial literacy resources are a great way to introduce important topics to kids.
For kids who love the boardgame Life: Claim Your Future®
If your child loves board games, Claim Your Future® is an engaging way to teach them about financial decisions. Created by the Finance Authority of Maine, this interactive tool has helped more than 1 million students in 90 countries make informed decisions about their future. Players can explore different career paths, weigh financial options and understand the impact of postsecondary education.
Claim Your Future® is designed for classroom use but can also be played at home. With its focus on career planning and financial decision-making, the game helps kids think critically about their futures and the role that money will play in their lives.
For the future kid-trepreneurs: Biz Kid$
Created from the Emmy Award-winning television series, Biz Kid$ is a comprehensive online resource that teaches kids the fundamentals of entrepreneurship and financial independence.
Kids who are interested in starting their own businesses or learning how to manage their money will find Biz Kid$ an inspiring educational tool. The platform offers educational videos, games and activities that cover a wide range of financial topics, from managing a lemonade stand to understanding how credit works.
For teaching kids about investing: Build Your Stax
Build Your Stax is a 20-minute game designed to introduce kids to the world of investing. Kids can play alone or in a classroom setting, and the game is a fun way to show how different investment strategies can lead to different outcomes.
For parents and educators looking to introduce investing concepts to kids, Build Your Stax offers a simple and engaging way to start the conversation. Players learn about certificates, stocks, bonds and other investment opportunities by trying to grow their wealth over a simulated 20-year period. Similar to Claim Your Future®, Build Your Stax offers kids a virtual future where they can safely call the shots and see the impact of their financial decisions.
For the kid who loves iPad games: Zogo app
The Zogo: Learn and Earn app is a gamified financial literacy tool that rewards kids for learning about money. The app features nearly 400 modules that cover everything from opening a bank account to planning for retirement. As kids complete lessons, they earn points that can be redeemed for real rewards, like gift cards.
Zogo's approach to financial education is perfect for children who are already familiar with mobile games and want to learn more about managing their finances in a fun, interactive way.
Teaching kids about money doesn't have to be complicated or overwhelming.
By using age-appropriate tools and resources, parents and educators can make financial literacy both fun and engaging for children. Whether it's through interactive games, podcasts or educational videos, these resources help kids build a strong foundation for managing money wisely in the future.
As always, Apple FCU is here to support you in raising financially savvy kids who are prepared for the world ahead. By utilizing our student-exclusive products, you can provide your children with the right tools for a solid foundation in financial literacy.
