Building Breadwinners
I learned a little about money while I was in school, but not a variety of financial literacy topics. It was important for my kids to have a different experience. I never wanted them to view money (or taxes) as something scary or complicated.
We started our financial literacy education by paying them for chores. The kids got paid in singles, which we then helped them split into 3 main categories: Give, Save, Spend. This worked great in the toddler and early elementary years.
This post, 10 Financial Literacy Topics to Empower Your Kids, is a sponsored post. That means I was compensated for my time. My opinions however are my own. Please see our full disclosure for further information.
But what about those later elementary years? I recently discovered a financial literacy curriculum full of relatable financial literacy topics.
Before Personal Finance takes this basic foundation (earn, give, save, spend) and explores real-world financial decisions with your upper elementary and middle school-aged children. They earn, save, and spend money over several (imaginary, yet realistic) years, taking them through high school.
Introducing BEFORE PERSONAL FINANCE
The world runs on money, and financial literacy is the key to navigating it confidently. Before Personal Finance equips your kids with these essential skills early on sets them up for a secure and prosperous future.
Exploring these financial literacy topics empowered my kids to make informed decisions about earning, spending, saving, and future investments. And it will do the same for YOUR kids!
This is not an exhaustive list of financial literacy topics, but a way to start. Learning about earning, spending, and saving money reduces the risk of debt, helps kids achieve financial goals, and ultimately fosters a sense of control and confidence over their financial well-being.
Financial Literacy Topics
Here are 10 engaging financial literacy topics you can explore with your kids, turning them into responsible money managers. When you use Before Personal Finance to support these topics you’ll take your kids on a journey through time – earning, spending, and saving as they design their potential future.
Money Basics
Start with the foundation – what is money? How is it made? Discuss different forms of money (coins, bills, digital) and how we use it to buy things and access services.
Activity: Create a “money timeline” with your kids. Start with bartering and move through the introduction of coins, paper money, checks, and finally, digital transactions.
Activity: Visit a mint (in-person or virtually) to see how money is made. Follow this with a discussion about the different materials and designs used for various denominations.
Inside Before Personal Finance kids begin by imagining they are 13. They get to pick how they’ll earn money, spend money, and give money to help others.
Budgeting
Budgeting is like having a spending plan. Introduce kids to the concept of tracking income (allowance, earned money) and expenses (toys, snacks). Simple tools like allowance trackers or budgeting apps can help them visualize their money flow.
Activity: Use a monthly allowance to teach budgeting. Have your child divide their money into categories like saving, spending, and giving.
Activity: Create a mock budget for a family vacation or a party. Include costs for food, activities, and other expenses.
Earning Money
Help your kids understand the connection between effort and reward. Explore ways they can earn money – chores, allowances, or even small side hustles like selling crafts or lemonade stand profits.
Activity: Set up a small business project, like a lemonade stand or a bake sale, and guide your child through the process of earning money.
Activity: Discuss different jobs and careers. Use role-playing games where your child can “apply” for a job, “work,” and get “paid.
Wise Spending Habits
Impulse buys can derail any budget! Teach your kids to differentiate between needs (food, shelter) and wants (latest gadget). Encourage comparison shopping, avoiding unnecessary purchases, and prioritizing needs first.
Activity: Take your child shopping and give them a set amount of money. Discuss needs vs. wants and how to prioritize purchases.
Activity: Introduce the concept of comparison shopping. Use online tools or visit different stores to compare prices for the same item.
Giving Back – The Power of Sharing
Financial literacy isn’t just about spending. Inculcate the value of giving. Let your kids choose a cause they care about and donate a portion of their allowance or earned money. Volunteering their time can also be a form of giving.
Activity: Encourage your child to set aside a portion of their allowance for charity. Choose a cause they care about and research it together.
Activity: Volunteer at a local charity or organize a fundraising event. This hands-on experience can illustrate the impact of giving.
Borrowing Money – Understanding Debt
Introduce the concept of borrowing money and the responsibility that comes with it. Discuss interest rates and the importance of paying back loans on time. Explain how excessive debt can be a burden.
Activity: Role-play a lending scenario. You can lend your child a small amount of money and explain how interest works. Set up a repayment plan and discuss the terms.
Activity: Use storybooks or videos that explain borrowing and lending in a child-friendly way.
Government and Money
Taxes may not be exciting, but they’re a part of life. Explain, in a way appropriate for their age, how taxes are collected and used to fund government services like schools, roads, and parks.
Activity: Explain taxes by playing a game where your child earns play money and then pays a portion of it in “taxes” for public services like parks, schools, and roads.
Activity: Use online resources to show where tax money goes and discuss how the government uses it to provide services.
The Wonderful World of Banks
Banks are safe havens for our money. Explain the different types of accounts (checking, savings) and the benefits of using banks, like security and access to ATMs.
Activity: Visit a local bank for a tour. Many banks offer educational tours for children to learn about saving, checking, and other banking services.
Activity: Set up a “family bank” at home where your child can deposit their money and earn interest over time.
Investing – Growing Your Money
Investing isn’t just for grown-ups! Start simple – explain how saving money in a piggy bank or a savings account helps their money grow. You can even introduce age-appropriate concepts like stocks and bonds in basic terms.
Activity: Use a simple investment simulation game to demonstrate how investments can grow over time. Websites like MarketWatch offer virtual stock trading games.
Activity: Discuss the concept of risk and reward using examples like a lemonade stand. Explain how some investments can be safer but offer lower returns, while others are riskier but can yield higher returns.
Insurance – Safety Nets and Peace of Mind
Explain how insurance acts as a safety net – protecting us from unexpected financial burdens in case of accidents, illnesses, or property damage.
Activity: Role-play different scenarios where insurance would be useful, such as a car accident, a house fire, or health issues. Explain how insurance helps cover unexpected costs.
Activity: Use storybooks or videos that explain insurance concepts in an engaging way. Follow up with a discussion on why people buy insurance and how it protects them.
Feeling a bit overwhelmed?
Remember, financial literacy is a journey, not a destination. Make it fun and engaging by using real-life examples, games, and age-appropriate activities. By empowering your kids with these valuable life skills, you’re setting them on the path to financial well-being and a secure future.
BEFORE PERSONAL FINANCE addresses each of these 10 areas in a fun, engaging way. The workbook contains teaching tips for parents (or teachers) as well as realistic financial scenarios. There are even quizzes you can use to assess your child’s understanding. Use the curriculum for 10 weeks or 10 days. It’s designed to be a fun way for your child to experience the rewards (and consequences) of financial decisions before they begin making them for real!
Take a peek inside the workbook HERE.
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