It’s never too early to teach kids about money or finances. In fact, children can begin understanding the foundation of money as early as two years old. We could be biased, but we firmly believe that financial literacy is a very important concept to learn, and yet, it is not taught in school. How can we expect adults to have good money management habits if they are never given the opportunity to learn them before they are thrust into adult life (where trial and error could create life-long financial problems)? Parents have ample opportunity to begin teaching their young children about money and finances.
If you’re wondering where to begin or what your child will understand at their age, check out this article by Parents.com. It breaks down age ranges starting from two years old up to 16 years and older. Younger children can learn about coins based on shape and size but may not understand that size doesn’t necessarily mean more value. The article states that young children may choose a nickel over a penny or dime because of its size. This presents the opportunity to teach your child the value of money. As your children get older, they can begin learning more complex financial concepts, such as coin collecting, pretending to invest in companies, and learning about store-value cards in preparation for handling Credit Cards in the future.
We value the importance of and are committed to teaching not just children, but all of our community, financial literacy and money management skills. It is why we created an activity workbook to help parents engage their kids in learning about money and finances. In this workbook, children will learn how to identify a need versus a want, how to count money to buy things, and how to develop savings goals. You can download a printable Activity Book here. If you have questions on how to help teach your children financial literacy or need to open an account for your child schedule an appointment with a Yolo Federal representative or visit our website to learn more.