Financial literacy ideas for tots!

Surprisingly, kids can start to understand money concepts by age 3. This is a time when learning is happening fast so help them sponge in some great lifelong habits. Here’s a few things you can do with your kids aged 3–5…

1. Help connect the idea of currency trade. Show your kids that to buy an item, they need to trade money. The best (and a really fun) way to illustrate this concept is by playing “Store”. Use board game money or make your own and trade it for their mud pies, playdoh creations and handmade artwork.
2. Practice the idea of value. When you are playing store, ask your tot “How much does that cost? 1, 2, 3 or 4?” You don’t need to worry about denominations… just the idea that different items cost different amounts. And remember, you can always say “That’s too much for me. Can you show me something else?”
3. Build confidence with commerce. To really build healthy money habits, kids need to feel good about their transactions, on both sides of the coin. If they are selling you something for pretend money, show them that you are thrilled with your decision to buy their latest tuna can sail boat. If they are buying something from you, tell them what a great choice they made to purchase your pretend cup of tea and cookies. Confidence is key to continued interest in making smart money choices.

Enjoy this time to teach through play. Time flies so have fun with it, and trust me… the lessons will stick.