Your child isn't going to become a financial genius overnight, and at this age you are just going to work on basic aspects of finances that coincide with what they are learning in school, like their numbers. But in order to start introducing them to the concept of money, that everything has a cost, and that funds aren't unlimited, you should start teaching them:
- The concept of a piggy bank to keep money in order to save it.
- The idea that you need money in order to make purchases and sometimes you have to wait to earn it.
- How to identify different bills and coins.
- The importance of practicing their numbers (and they can even start reading prices while shopping!).
- Identifying the difference between their wants and needs so they learn how to prioritize when you can't always buy everything.
- The difference between big and little purchases — and that cost isn't the same as size.
- How to show gratitude for the gifts they receive.
