The benefits of teaching kids about money
When should we start talking to kids about money? Teaching kids about money at an early age can shape how they handle it as they grow up. Let's explore the benefits of talking to children about money and share some fun resources to help start the conversation.
Parents may think that personal finance isn’t a big deal for children, or that it’s not important to worry about things like money just yet. However, financial literacy for kids can have a huge impact on the way they perceive and manage money as adults. Using interactive games or involving kids in small decision-making scenarios not only helps them develop a natural understanding of these concepts, but when approached properly, can make learning about them feel less like a chore.
The Federal Deposit Insurance Corporation (FDIC) and other sources have researched the benefits of financial literacy for kids in the long term and have found that the more financial education kids receive, the more likely they are to:
- become financially independent and responsible as adults
- lower their debt levels
- achieve higher savings and credit scores
- reduce their long-term stress and sustain better mental health outcomes
- gain self-confidence and build stronger relationships
- achieve higher net worths later in life
There's a clear link between early financial education for children and positive life outcomes. When kids understand and integrate money concepts into their lives early, they're more likely to make thoughtful decisions about important milestones such as getting a job or buying a home.
We recognize the importance of teaching these essential skills early, and as part of Financial Literacy Month in Canada, we've launched Smart$ense, a website with financial resources to help kids learn about financial concepts. These resources include videos and handouts tailored to different age groups, with the goal of equipping them with useful, age-appropriate knowledge that can help them grow into financially confident adults.
Smart$ense covers topics like:
- Saving vs. spending and what is money? (age 6-8)
- Needs vs. wants (age 9-13)
- Debit vs. credit cards (age 14-18)
The best way to help kids develop healthy financial habits and a positive attitude toward money is through fun and interactive learning experiences.
Start the conversation about money today.
Share Smart$ense with the young learners you know
Important disclosures
The commentary in this publication is for general information only and should not be considered legal, financial, or tax advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.