Managing money isn’t easy and waiting to learn until adulthood makes it even more challenging. Teaching kids about money early on helps them become more financially independent as they grow older. Research indicates that early exposure to financial education correlates with decreased debt, greater savings, and enhanced credit ratings as individuals transition into adulthood. Later in life, this education positively impacts net worth and investing. According to the FDIC, parents play a crucial role in shaping their child's financial future by consistently sharing knowledge, modeling responsible behavior, and engaging children in experiences that foster financial literacy.
As Halloween approaches, it’s the perfect time to weave financial lessons into festive activities. Whether it’s budgeting for costumes, planning a Halloween party, or managing candy expenditures, there are ample opportunities to teach children valuable money skills. In this blog, we’ll explore tailored conversation starters for different age groups, from preschoolers to teens, and suggest fun apps and board games to help make financial discussions more engaging for kids of all ages.
Ages 3-5: Introducing Basic Money Concepts
Even at this early stage, kids can start to understand the basic ideas of money. Though they might not grasp complex financial principles yet, they can begin to understand that money is used to buy things and that it can be saved or spent.
Financial Focus: Understanding Value and Exchange
Children in this age group can learn through simple activities, like playing store or using toy money, to understand that things cost money and that sometimes you need to save up to get what you want.
Conversation Starter for Parents:
"When we pick up items from the store, we hand over some cash to the cashier, similar to how you lend your toys to friends. Money allows us to get the things we need and want, but it's important to save some for later!"
App Suggestion:
Bankaroo – This app introduces kids to the idea of virtual money and saving. They can track their savings and set goals in a fun way. It’s perfect for young children, with simple graphics and features that make learning about money enjoyable without overwhelming them.
Board Game Suggestion:
The Allowance Game – A fun and educational board game that teaches children how to manage money by doing chores, saving, and spending their allowance wisely. It's great for introducing basic financial concepts to kids as young as 3-5.
Age 6-10: Building Foundations with Fun
Children at this stage are naturally curious and ready to absorb basic financial concepts, including saving, spending, and budgeting. They’re at the perfect age to start understanding that money is more than just paper or coins—it requires careful thought, just like deciding whether to eat all their Halloween candy at once or save some for later.
Financial Focus: Saving and Spending
This is the time to introduce the idea that money, like candy, can be used immediately or saved for something more enjoyable in the future. By relating these lessons to things kids care about, such as a fun toy or even treats, you’ll make financial education fun and engaging.
Conversation Starter for Parents:
“Imagine you've collected a mountain of Halloween goodies. You could eat it all at once, but wouldn’t it be more fun to save some for later? Money works the same way! If we spend all our money now, we won’t have anything left for things we want later on."
App Suggestion:
Cash Crunch Junior – This interactive game introduces children to basic money management skills. By learning how to budget and save for specific goals (like deciding whether to eat their candy now or save it), kids can practice real-life financial scenarios in a fun way. According to a study by Cambridge University, children’s financial habits are often set by age 7 (MacFarland, 2022), making it vital to introduce budgeting early to foster responsible money habits.
Board Game Suggestion:
Monopoly Junior – This version of the classic game is perfect for younger children, typically ages 5 and up. It features simplified rules and shorter game times, making it accessible and engaging for kids. Players buy, sell, and trade properties while learning the basics of money management in a fun setting.
Some financial concepts or games may feel a bit advanced for younger children, but by simplifying rules or adjusting gameplay, you can make learning about money fun and easier for them to grasp.
Age 11-13: Budgeting for Bigger Goals
At this age, children are becoming more aware of their financial surroundings and are ready to understand more complex concepts, such as budgeting for bigger goals. Think of it as creating a “financial map,” just like how kids might plan their best trick-or-treating route to ensure they hit all the houses with the biggest candy bars.
Financial Focus: Budgeting for Future Rewards
Teaching children about budgeting can be as simple as helping them plan how to divide up their allowance or deciding what to save for. Relate it to something fun, like Halloween: "You have a limited amount of candy and need to make it last. How do you make sure you have some treats left for the weekend?"
Conversation Starter for Parents:
"Think of budgeting like planning your trick-or-treat route. You may not want to waste time on the houses giving out hard-boiled eggs, right? Just like with money, we plan so we can make the most of it and get what we truly want."
App Suggestion:
Starling Kite – This app is perfect for older tweens and teens looking to learn how to manage their money, track their spending, and even start saving or investing. It offers kids and parents the ability to collaborate on financial goals. Starling Kite offers kids a hands-on platform to explore budgeting, develop their saving skills, and gain insights into managing money—all within a secure and engaging setting. Starting to save and invest early is key to building future financial independence. Your child gets their own debit card, made from eco-friendly recycled plastic, and a connected app to help them track their spending and savings.
Board Game Suggestion:
Monopoly – The classic version of Monopoly is ideal for this age group as they can grasp the strategic elements of buying properties, managing money, and making deals. As kids play, they learn valuable lessons about cash flow and investment, which can be directly related to budgeting their allowance and saving for bigger goals.
Age 14-16: Understanding Needs vs. Wants
As teens start earning their own money through chores, allowances, or part-time jobs, they begin facing decisions about how to spend it. This is the ideal age to introduce the concept of distinguishing between needs and wants. Whether saving for a Halloween costume or deciding between two items at the mall, they’ll start learning how to prioritize.
Financial Focus: Prioritizing Needs Over Wants
Teaching your teens how to separate needs from wants can help them make smarter financial decisions. Relate this lesson to everyday situations, such as deciding between spending money on a new costume for a party or saving for a bigger goal, like a new phone or concert tickets.
Conversation Starter for Parents:
"Let’s say you’ve got your eye on that awesome Halloween costume, but you also need to save for an upcoming school trip. While the costume would be fun, it’s more of a 'want' than a 'need.' Learning to balance these decisions and prioritize what’s most important helps you make smarter money choices now and in the future."
App Suggestion:
BusyKid – This app allows teens to earn, save, and spend money they've earned through chores. It also includes features for saving and giving, helping teens understand the importance of balancing different financial responsibilities. Helping kids understand the difference between essential needs and discretionary wants nurtures their decision-making abilities, equipping them with valuable skills for the future (Admin, W., 2022c).
Board Game Suggestion:
The Game of Life – This game allows players to experience life choices and their financial consequences, making it a great way to discuss financial planning in a relatable context.
A Special Note - Introduce a Teen-Friendly Bank Account:
Consider setting up a teen-friendly bank account to help them manage their money in the real world. Many banks offer special accounts designed for teens, with lower fees and parental oversight. This gives teens a safe space to learn how to deposit, save, and even spend wisely, all while getting familiar with important banking concepts like interest, fees, and online banking.
Learning these habits early can set teens up for future financial independence.
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Age 17-19: Preparing for Financial Independence
As teens transition into adulthood, they need to understand more advanced financial concepts, such as credit, debt, and interest. This age is crucial for teaching them how to manage money wisely, ensuring they are well-prepared for financial independence.
Financial Focus: Managing Debt and Understanding Interest
Introducing teens to concepts of borrowing, lending, and interest helps prepare them for the financial realities of adulthood. Make it relatable by comparing borrowing money to borrowing candy—just like you might have to return an extra piece of candy when you borrow some from a friend, borrowing money often comes with extra costs.
Conversation Starter for Parents:
"Imagine you're throwing a Halloween party, but you're a bit short on cash for decorations and costumes. You decide to borrow money from a friend to cover the costs. But when it’s time to repay, your friend asks for more than what you borrowed—that’s interest. Borrowing money isn’t just about paying it back; it often costs extra. Understanding how interest works now will help you avoid paying more than you need to in the future, whether it's a credit card, loan, or mortgage." Understanding how this works now will help you avoid getting ‘tricked’ by bad debt in the future."
App Suggestion:
Acorns – This app is perfect for older teens looking to dip their toes into investing. Acorns automatically rounds up your purchases to the closest dollar, investing the extra cents, providing an effortless and automated method to kickstart your investment journey.
Board Game Suggestion:
Cash Flow 101 – This board game teaches players about investing, cash flow management, and financial strategy, offering a more advanced perspective on money management. By equipping teens with these skills early, they’ll be better prepared to manage their finances responsibly in the future.
Final Thoughts: Money Lessons That Last Beyond Halloween
Teaching kids about money is a lifelong journey, but by introducing them to these concepts early, you’re setting them up for financial success. Whether it’s through simple conversations, interactive apps, or even a Halloween-themed lesson, the key is to make learning about money fun and relatable.
Teaching kids about money isn’t just about saving and spending--- it’s about instilling responsibility and empowering them to make decisions that will benefit their future." - Katie MacDonald
By using everyday moments to weave in these lessons—like planning a trick-or-treat route or deciding what to do with their candy stash—parents can turn financial literacy into an exciting adventure. For older teens, you might compare it to planning a Halloween party budget, deciding between decorations, food, or entertainment—learning to prioritize and manage costs in a fun way. After all, learning about money doesn’t have to be scary—it’s just another treat to enjoy on the journey of life.
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Resources
Admin, W. (2022, October 18). Financial Literacy for Students: It’s Important to Know Why. BusyKid Kids Debit Card & Allowance App. https://busykid.com/blog/financial-literacy-for-students/
MacFarland, B. (2022, September 16). Myth: money habits are set by age 7 - kid wealth. Kid Wealth. https://kidwealth.com/money-habits-set-age-7/
Taylor, M. (2024, June 5). How to teach kids about money before high school. Parents. https://www.parents.com/parenting/better-parenting/advice/how-to-teach-kids-about-money-before-high-school/
FDIC. (n.d.-b). Teaching children about money now, pays dividends later. https://www.fdic.gov/consumer-resource-center/2020-09/teaching-children-about-money-now-pays-dividends-later
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