At What Age Should My Child Be Involved in Finances?

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Deciding when to introduce your child to finances can be tricky. Too soon, and it could go over their head, but you also don’t want to do it too late and risk any developmental issues.

It’s a lot of pressure on parents to ensure their children have a clear understanding of money and one we must get right.

So at what age should my child be involved in finances? Well, we are here to give you an answer!

Generally speaking, your child can be introduced to the concept of finances as young as three years old! Let’s look a little closer at this and help get you ready to introduce your child to finances.

Table of Contents

What’s the best age to introduce kids to money matters?

As we mentioned earlier, children as young as three can be introduced to finances. We would not suggest anything overly complicated at this stage, merely showing a child different coins or notes is a good start.

Children enjoy playing shop and can be an excellent way to introduce young children to finances, showing them how money can be exchanged for goods.

When deciding what age to teach your children about finances, it is always worth considering whether it will be too advanced for your child.

Age can be a great indicator for readiness, but every child develops at a slightly different time, so there is always some leeway.

For those whose children are already above the age of three, engaging them with finances is an excellent idea and one you can start on as soon as you like. It is worth considering the activity and making sure your child will enjoy it and be challenged by it. 

Older children may enjoy a real-world setting, such as paying at a store or being given their own money to budget; we’ve got some helpful tips for this coming up, be sure to consider what your child would enjoy!

Remember that there is no time like the present to introduce your child to finances, as long as it is fun and educational.

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How should I do it?

How you introduce your child to finances will, of course, be primarily dependent on their age.

There is an argument that introducing your child to money too young can be problematic, but as long as it is done in a fun and engaging way, there should be minimal risk of any developmental damage to your child.

After all, children are curious; why not engage them with new information in the world? 

An excellent way to start is in the home where children can feel safe and play activities. You could make a little shop at home or a restaurant, where your children will need to pay the bill.

For those who may not want to introduce their children to real money, you can pick up play money at an affordable price that can be useful. 

It is always a good idea to engage children with real-world experiences as well, such as ATMs or paying at shops to show them how finances work in everyday life.

You can start by showing them how to withdraw money at an ATM or helping them to count out the cash and pay in a store. 

What about saving money?

Teaching children the value of saving money is one most adults wish they were taught sooner as children! Teaching children to save money will put them in a good position when managing their money or saving for housing deposits in the future. 

An excellent way to do this with children is to have them save for something they want, such as a new toy or clothing piece. This ties in with our next section about giving children their own money so keep reading for tips on that! 

Not only will saving teach children about finances, but about the power of hard work and determination. All of these skills will put them in a good position later in life.

Those who do not wish just to give their children money could opt for a chore based system where children have rewarded money for housework; why not kill two birds and get your house cleaned too?

Should they have their own money?

Now, I’m not about to say that you should give your 3-year-old some pocket money or an electricity bill to pay, but offering older children the chance to have and budget their own money can be beneficial. 

As we said earlier, having your children earn money can be a great way to teach them the importance of hard work and help them save and manage their finances.

For older children, you could also take a very Mary Poppins trip to your local bank and help them open their savings account. In most states, children can have their own bank account to save their money in. 

A bank account can help your children understand money and the importance of saving for something they want. When giving children their own money, it is an appropriate amount, depending on your income and age. The amount is a personal choice and one you should thoroughly consider. 

Giving children their own money will help them understand finances and provide them with the satisfaction of saving for something and the result paying off.

Do you remember saving your pennies and finally managing to buy a new doll or game? That feeling will stay with your children and instill a healthy view of finances.

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Final Word

Before you go today, let’s draw everything together. Involving children in finances is an excellent way to teach them about the importance of money and how to manage it.

While there is no correct age to introduce your children to finances, any age from 3 and over is an excellent place to start. 

We would agree and say that the sooner you introduce your child to finances, the better!

Ensure that it is fun and engaging for younger children while instilling the message of the importance of saving and hard work to raise self-aware children who will handle their finances independently.

By successfully teaching your children about money and finances, you may even inspire them to take over or start their own family business!

About Chris Craft

Hi! I'm Chris(topher) Craft. I'm a believer, husband of an amazing woman (Wanda), and father of three talented kids (Naomi, Maria, and Elijah). I love writing, making music, learning about God's Hand in History, entrepreneurship, and basketball. Thank you for reading my stuff! ❤️ Connect with me on Twitter @CraftWrites.