Teaching kids about money is one of the most valuable lessons you can give them. As a mom who has raised two kids now in their mid-20s, I’ve seen firsthand how early financial lessons pay off. Watching them navigate jobs, housing, cars, credit cards, insurance, and even 401ks in their early 20s has reinforced how important it is to start teaching financial literacy young.
Children who understand money management early gain confidence and competence in handling their finances.
By making money lessons fun and engaging, you can help set your kids up for success before peer influence takes over. Here are five easy steps to start teaching your kids about money today.
1. Read Stories About Kid Entrepreneurs
Children learn best through stories because stories engage their imagination, making complex concepts easier to understand and remember. When kids connect emotionally with characters and narratives, they internalize lessons more naturally than through direct instruction.
I wrote The Little Books of Big Business series to teach entrepreneurship through engaging stories. These books introduce concepts like earning money, budgeting, and spending, which are fun and engaging for kids.
Reading stories about young entrepreneurs shows children that making money is possible at any age. It also helps them see real-world applications of financial principles in a relatable and exciting way.
2. Use Play to Teach Your Kids About Money
Kids love to play, and play-based learning is one of the best ways to introduce money concepts. Set up a pretend store at home where children can buy and sell toys, books, or snacks using pretend money. This activity teaches basic math skills, the concept of exchanging money for goods, and how to make purchasing decisions.
Other play-based ideas include:
Playing restaurant – Kids take turns being the customer and the cashier or server. They can play with pretend food or integrate play during a regular household meal. Let them get inspired by Cat Casey Turns Brownies Into A Business
Pop-up Shops– Kids can sell anything from pretend food truck items and seasonal farmers market fruits and vegetables to t-shirts or games. (Each of the Let's Play Money activity packets includes a page dedicated to a pop-up shop kids can color, along with a cash page they can use to operate their shop)
Offering a service – Kids love to offer services from pedicures (real or pretend), sitting at a desk processing paperwork (they will love reading Emma Mason Turns Paperwork Into A Profit), or taking care of pets (real or pretend) like Max in Max England Turns A Pet Project Into Pay.
By incorporating money into play, children naturally develop an understanding of financial literacy without feeling like they are in a lesson.
3. Use Coaching Conversations To Talk About Money
Coaching is a powerful way to teach kids about money. Instead of simply telling them what to do, a coaching approach encourages them to think through financial decisions on their own. This conversation style helps children build critical thinking skills and confidence in handling money.
As a professional coach, I know how powerful certain questions can be. Here are some simple ones to use with your kids:
Ask open-ended questions – Start questions with "What or How" ("What do you think happens when...?” "How would you earn or spend...?")
Encourage decision-making – “Would you rather spend your money on a toy today or save it for something bigger?”
Discuss real-life scenarios – Talk about grocery shopping, budgeting for a trip, or saving for a special event. ("Does this fit into our budget?")
It's never to early or late to start using coaching questions. You will find they work really well with teens and young adults.
4. Encourage Kids to Start Their Own Business
One of the most engaging ways for kids to learn about money is by earning it themselves. Help your child start a micro-business that fits their interests and abilities. The business doesn't need to last forever. Much is learned during a two-hour lemonade stand or caring for a pet for a weekend. Some small business ideas for kids include:
Lemonade, shaved ice or bake sale stands – A classic way to learn about costs, pricing, and profits. (Get inspired by Cat Casey Turns Brownies Into A Business)
Yard work – Mowing, raking leaves and shoveling snow are just a few services kids can offer.
Farmers market pop-ups – Selling handmade crafts or homegrown produce. (Get inspired by Tim Young Turns Clouds Into Coins)
Starting a small business helps kids understand the value of money, the effort required to earn it, and the importance of managing it wisely. Encourage them to keep track of their earnings and expenses to introduce the basics of budgeting (All The Little Books Of Big Business books teach kids how to budget their earnings.)
5. Use Play-Based Activity Sheets to Reinforce Learning
A structured way to teach financial literacy is through play-based activity sheets. Let’s Play Money offers engaging printable worksheets designed for kids from preschool to sixth grade. They are full of crossword puzzles, money math worksheets, money news, games and coloring. These activities teach essential financial literacy concepts such as:
Earning an Income
Spending & Saving
Financial Psychology
Risk & Insurance
Credit & Debit
These worksheets make learning about money fun and interactive. Kids can color, cut, and complete challenges reinforcing key financial lessons. Making these activities a regular part of their routine helps build long-term financial confidence.
Start Early and Stay Consistent
The best time to start teaching kids about money is when they are young and eager to learn. When financial lessons are paired with their interests—whether through books, play, coaching, business ventures, or activity sheets—kids develop a natural understanding of money management. By making these lessons a regular part of their childhood, they gain the skills needed to make wise financial choices as they grow.
Teaching kids about money isn’t a one-time lesson—it’s an ongoing journey. Start today with these five easy steps, and watch your child develop the confidence and knowledge to manage their finances for a lifetime.
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