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8 Monetary Literacy Benchmarks for Kids of Each Age

It doesn’t matter what age your baby is, it’s by no means too early to begin instructing them the significance of economic literacy. 

From studying the fundamentals of saving to working towards managing a funds, monetary literacy equips youngsters with the instruments they should thrive.

Should you’ve ever missed a lease cost, needed to clip coupons to afford groceries, or struggled to maintain the lights on, you particularly perceive what we imply. 

By making a plan upfront, you can begin taking steps to help your youngsters on their journey to monetary independence. 

Should you’re searching for a leg up, we’ve ready a fast information that can assist you alongside the way in which. 

In as we speak’s article, we’ll present you methods to help youngsters of any age in hitting the monetary literacy benchmarks they’ll want and instructing them to handle cash with care.


Preschoolers are nonetheless coming into their very own, however that doesn’t imply they will’t be taught the fundamentals of cash administration. 

Whether or not they have a robust grasp on what cash actually is or they’re nonetheless attempting to determine it out, the next methods can put together preschoolers for monetary literacy.

A penny saved is a penny earned 

Train your preschooler financial savings fundamentals by concerning the adage, “a penny saved is a penny earned.” 

Hand them a conventional piggy financial institution and clarify how they’ll begin utilizing it to retailer change and lower your expenses. You might additionally go for an internet model and educate youngsters methods to apply utilizing a digital piggy financial institution. Take a look at Bankaroo, for instance.

Since youngsters at this age could also be too younger to know the idea of doing chores for an allowance, begin by giving them any unfastened change you’ve gotten. As an illustration, hand them any change you get while you come house from the shop. Or hand over any unfastened cash you discover in your purse.

Studying and working towards methods to depend cash

Earlier than including cash to the piggy financial institution, ask your preschooler to depend every coin and invoice. In the event that they haven’t realized what every coin and invoice quantities to, apply figuring out each first after which counting. 

When a toddler struggles to know counting or just wants extra apply, dedicate a couple of minutes every week to on-line counting video games.

picture: splashlearn
Take piggy banking a step additional by having your kiddos depend their method to their financial savings objective — after which select a devoted merchandise to purchase and rejoice with.

You can too ask them to depend out cash for cashiers on the grocery retailer if there’s not a busy line behind you.

Follow saying one thing like, “Hey Matthew, listed below are 4 pennies. Are you able to depend them out to the cashier, please? One, two, three, …” 

Abstract: Monetary literacy benchmarks for preschoolers 

At preschool age, youngsters ought to start to:

  • Perceive the fundamentals of saving 
  • Learn to depend/apply counting cash 


Grade schoolers have a firmer grasp of the world round them. By this age, they usually know methods to depend and lower your expenses, and what cash is used for. 

Give grade college youngsters an extra leg up with the next three suggestions.

Studying methods to financial institution 

An necessary benchmark to begin your youngsters on the street to monetary success is getting them to know banking fundamentals. 

Start with easy issues, like depositing right into a checking account versus a financial savings account or studying methods to use a debit card. 

Drive the concept house additional by opening up their very personal youngsters’ checking account, financial savings account, and get them a kid-friendly debit card.

Pay particular consideration to debit card do’s and don’ts, too. As an illustration, educate your baby the significance of monitoring debit card spending in a small ebook or ledger — and methods to verify their work utilizing on-line banking.

Studying funding fundamentals 

Grade college youngsters will want a while to know funding fundamentals, so begin by instructing your youngsters how cash grows. 

Use visuals and storytelling to color an image. 

As an illustration, “Cash grows like a backyard. While you water seeds and provides them sufficient solar, flowers develop, proper? While you make investments your cash with care, new cash can develop, too.” 

While you’re prepared to speculate to your youngsters, think about using an funding gifting app, like EarlyBird. 

EarlyBird has upgraded the act of gifting cash to youngsters in a strong approach. Not solely are you able to make investments to your baby on their behalf, however household and associates can, too. 

Financial gifting app for kids

picture: getearlybird
When a liked one makes a brand new deposit or funding in your baby’s behalf, open the app and present your baby. When investments make and/or lose cash, present your baby the totals and briefly clarify what occurred. 

Doing this over time can assist your baby start to know funding fundamentals.

Incomes an allowance

Grade college youngsters are sufficiently old to know the idea of incomes an allowance. Allowances are additionally an efficient method to educate youngsters methods to earn, save, and spend their very own cash. 

Begin with one weekly chore, like taking out the trash or deep cleansing their room. In the event that they’re open to it and so they have time, see in case you can bump it as much as one or two extra weekly chores.

Abstract: Monetary literacy benchmarks for grade-schoolers 

Grade schoolers ought to start to:

  • Perceive banking and funding fundamentals
  • Know methods to use financial institution merchandise to spend, deposit, and lower your expenses 
  • Perceive the fundamentals of incomes, saving, and spending their very own cash 


By their teenage years, youngsters ought to perceive the basics, together with incomes, spending, and saving their very own cash. They could have even began working and are incomes paychecks or direct deposits. Many teenagers use a debit card steadily. 

Equip teenagers even additional with the next three suggestions.

Unbiased banking 

Hand over extra monetary accountability to your teen by upgrading their kid-friendly accounts to pupil financial institution accounts

In the event that they’re sufficiently old and qualify, contemplate opening a pupil bank card, too, to allow them to begin constructing credit score. Earlier than making use of for the cardboard, educate your teen methods to deal with credit score responsibly.

Monetary profession planning 

When teenagers are able to look into completely different careers, it’s necessary to information them towards contemplating a return on funding for his or her training. 

To set them heading in the right direction, assist them analysis wage guides and commonplace business charges in accordance with their dream jobs. 

As an illustration, in case your teen needs to grow to be a nurse, guides like this CRNA wage information can assist them higher perceive how a lot cash they will make from their chosen profession path.

Budgeting and financial savings plans/targets

Train your teen how necessary budgeting and saving are to reaching their monetary targets. 

Screenshot from the budgeting app, Mint

picture: intuit
Clarify the significance of paying payments on time and appropriately allocating funds for payments, curveballs, emergencies, and financial savings targets. Train them methods to funds the old style approach, or counsel a budgeting app, like Mint. 

Abstract: Monetary literacy benchmarks for youngsters 

Youngsters ought to start to:

  • Follow impartial banking 
  • Analysis profession guides and commonplace business charges
  • Follow budgeting and saving

Wrap up 

As a mum or dad, one of the vital reassuring issues on the planet is understanding that your youngsters will be capable to make it on their very own. 

Dad and mom can equip youngsters with the monetary instruments they should thrive by taking proactive measures to show youngsters methods to handle cash. 

Are you planning on utilizing any of the following tips together with your youngsters? Depart us a remark under and tell us the way it goes.

Craving extra money administration suggestions? Head to our Finance part to be taught extra

Picture: Depositphotos



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