40 Ways to Teach Kids About Money that You Should Know

Teaching preschoolers about money is an essential life skill that parents and caregivers can impart to them.

It lays the foundation for healthy money habits in the future and instills values such as saving, budgeting, and responsible spending. Here are 40 practical ideas for teaching preschoolers about money that parents and caregivers can try.

Importance of teaching your preschoolers about money and savings:

Starting Early

Teaching preschoolers about money early on sets them up for a lifetime of financial literacy and responsibility.

Basic Math Skills

Introducing preschoolers to money helps them develop basic math skills such as counting, addition, and subtraction.

Money Management

Teaching preschoolers about money helps them understand the value of money and how to manage it responsibly.

Avoiding Debt

Teaching preschoolers about money helps them understand the importance of avoiding debt and overspending.

Activities that will encourage your kids to understand money:

Play “Store”

Set up a pretend store with play money and toys, and let your preschooler play the role of the cashier and customer. It’s fun to introduce your preschooler to buying and selling while teaching them basic math skills.

Counting Coins

Introduce your preschooler to different types of coins and help them count and sort them. This activity allows preschoolers to develop their counting skills and familiarity with currency.

Allowance

Give your preschooler a weekly allowance and encourage them to save a portion. This teaches your preschoolers about financial responsibility and helps them learn to manage their money early on.

Savings Jar

Help your preschooler decorate a jar for savings and encourage them to save money. This activity helps your preschooler learn about setting goals and saving for something they want.

Piggy Bank

Get a piggy bank for your preschooler and let them deposit their money. It’s a classic activity that helps preschoolers learn the value of saving money.

Budgeting

Teach your preschooler about budgeting by giving them a set amount of money to spend on a shopping trip. This activity helps your preschooler learn about making choices and managing their money wisely.

Needs vs. Wants

Discuss with your preschooler the difference between needs and wants. This helps your preschooler develop critical thinking skills and prioritize spending.

Charity

Encourage your preschooler to donate a portion of their money to a charity. This activity teaches your preschooler the importance of giving back to the community.

Garage Sale

Have a garage sale with your preschooler and let them sell their toys for money. This teaches your preschooler about entrepreneurship and the value of hard work.

Lemonade Stand

Please set up a lemonade stand with your preschooler and let them sell lemonade. It’s a classic activity that teaches your preschooler about making a product, marketing it, and making a profit.

Chore Chart

Make chores fun by creating a chart with stickers, and reward your preschooler with money for completing tasks. You could even add some silly tasks to make it more entertaining.

Matching Game

Play a matching game with coins and their values. You could even use different characters to represent each coin and make up a story for them.

Grocery Shopping

Take your preschooler grocery shopping and teach them about comparing prices. Make it fun by giving them a shopping list and letting them check off items as you find them.

Board Games

Play board games that involve money, such as Monopoly Jr. Add your own rules and twists to make it more engaging and unpredictable.

Allowance Jars

Help your preschooler divide their allowance into jars for saving, spending, and giving. Give each jar a fun name and decorate them together.

Money Maze

Create a money maze for your preschooler to solve. You could use cardboard boxes and tubes to create a labyrinth that leads to a treasure trove of coins.

Counting Game

Play a counting game with coins and their values. You could even turn it into a race and see who can count the coins the fastest.

Store Catalog

Create a store catalog with pictures of toys and their prices. Let your preschooler pick out items they want and discuss how much money they need to save.

Paper Money

Introduce your preschooler to paper money and teach them about its value. You could use play money to make it more interactive and create scenarios where they have to use the money to buy things.

Online Shopping

Show your preschooler how to shop online and compare prices. Make it a scavenger hunt by giving them a list of items to find on different websites.

Play Restaurant

Set up a pretend restaurant with play money and menus, and let your preschooler play the chef, waiter, or customer role. Encourage them to practice counting and making changes as they “serve” meals.

Play Bank

Set up a pretend bank with play money and let your preschooler play the role of the banker. This can help them understand the concept of depositing and withdrawing money and counting and sorting coins.

Coin Rubbings

Make coin rubbings with your preschooler and teach them about the different coin designs. This is a fun and creative way to introduce them to other coins’ details and help them differentiate between them.

DIY Piggy Bank

Help your preschooler make a DIY piggy bank from a cardboard box. This is an excellent activity for encouraging their creativity and problem-solving skills and teaching them the value of saving money.

Budgeting Game

Play a budgeting game with your preschooler where they have to allocate money for different expenses, such as food, toys, and charity donations. This can help them understand the importance of budgeting and making wise financial decisions.

Scavenger Hunt

Create a scavenger hunt with clues that lead to coins or money. This is a fun and interactive way to teach your preschooler about the value of money and how to count it.

Magnetic Money

Use magnetic coins to teach your preschooler about counting and sorting. This great sensory activity can help them develop their fine motor skills and learn about different types of currencies.

Story Time

Read books about money and saving for your preschooler. This is a great way to introduce them to financial concepts in a fun and engaging way. Plus, it can help develop their love for reading and learning.

Money Matching Puzzles

Create money-matching puzzles with your preschooler, where they have to match coins and bills with their corresponding values.

This activity helps preschoolers develop their matching skills while learning about the different denominations of money.

Play Cash Register

Use a toy cash register to play store and teach your preschooler about adding and subtracting money. You can also teach them how to give change and even create a scenario where they have to deal with an angry customer who received the wrong change.

Auction Game

Play an action game with your preschooler where they have to bid on toys with their play money. It’s a fun way to teach them about supply and demand and the value of goods and services.

Money Art

Use coins and paper money to create art with your preschooler. You can create a collage or even a sculpture made entirely of coins.

Savings Goal Chart

Create a savings goal chart with your preschooler and track their progress towards a savings goal. It could be a new toy, a trip to the zoo, or even a special treat.

Coupon Cutting

Show your preschooler how to cut coupons and save money on purchases. You can even create a pretend store where they can use their vouchers to get discounts on items.

Cash Envelopes

Help your preschooler create cash envelopes for different categories, such as saving, spending, and giving. They can decorate each envelope and learn the importance of budgeting and saving.

Coin Towers

Build coin towers with your preschooler and teach them about stacking and counting. You can even compete to see who can build the tallest tower.

Play ATM

Use a cardboard box to make a pretend ATM and teach your preschooler how to withdraw and deposit money. You can even make pretend ATM cards for them to use.

Coin Toss

Play a coin toss game with your preschooler and teach them about probability. You can also use the game to teach them about fractions and percentages.

Money Puzzles

Solve money-themed puzzles with your preschooler to help them develop problem-solving skills. You can find printable puzzles online or create your own.

Family Budget

Involve your preschooler in family budget discussions and teach them about income, expenses, and saving. You can even create a family budget and show them how every dollar counts.

Teaching preschoolers about money is a crucial life skill that can set them up for financial success in the future.

Using these practical and engaging ideas, parents and caregivers can help their preschoolers develop a solid understanding of money and how to manage it responsibly.

With some creativity and effort, teaching preschoolers about money can be a fun and rewarding experience for everyone involved.

Was this article helpful?

Join our active Facebook group for creative and fun activities, games, and other child development ideas.

Leave a Comment