Teach Money to Your Preschoolers - Top 5 Teaching Ideas

One of the first things children should learn about is money. It is an essential life skill and lays the foundation for later in life when people know about finances and mathematics.

Children ages three and six learn best when they use their hands to manipulate objects in the real world. This kind of learning is practical and has lasting meaning. For this reason, it’s also the best time to talk to them about money.

How Should I Teach My Preschooler about Money?

The best time to teach kids about money is the preschool years, but even toddlers will start to play with the idea of money at the store.

It can take some time, even years, for your child to understand the value of items or correctly compute change. For this reason, it’s better to provide opportunities where they can learn and have fun simultaneously.

Here are some ways to help teach your preschooler to learn the value of money:

1. Define the Value of Money

Children can learn how to purchase something at a store early by role-playing and practicing the real thing. They can also learn how to pay for items using cash.

Parents will teach their children the value of coins, notes, and other expensive items.

Don’t spend too much time using money just to memorize the value of different coins and notes. Just keep asking, “how much does it cost?”, “let’s see if we have enough,” etc. Eventually, you will develop a sense of how much everything costs.

2. Discuss the Different Forms of Money

If we only teach children about physical money in coins and bills, they won't know how to interact with online transactions or pay for goods by swiping a magical credit card.

Bank cards, interest, currency, and installments are a bit more complex than buying an item immediately, but they're still common banking concepts.

3. Reveal Values and Inner Beliefs About Money

Remember, what money does isn’t the only way to teach its importance; you can also tell them where money goes, from ordering a meal at a restaurant to paying a fare in a bus. Teaching your children about money may include preparing them for giving to charity, not wasting money, cultivating gratitude, treating all people with respect, and more.

4. Explain How Money is Earned

Children can learn that different careers have different pay rates and that education levels may influence people’s pay.

They need to learn that many people have started businesses, and these money-savvy individuals become successful.  You can list down different ways money can be earned, from salaries to allowances.

5. Teach Concepts through Dialogue

If you wish your kids to be financially savvy, you can make it a dialogue where you answer their questions first. Giving them a chance to talk will let them realize the practical application of money, helping them familiarize money management.


Start as early as your child is willing to learn, but don’t force them to engage in formal education until they are ready. Money is a vast and complex idea, so it will require a lot of small conversations and games to get a complete understanding across.

If you want to help your child develop financial literacy, start early. The earlier you start, the more financially independent they will be in the future.

Luckily, there are money apps for kids. Kiddie Kredit is a mobile money app designed to enlighten children on the credit system by completing chores. To begin money education, get it today and download it to any gadgets you have at home.

John D Saunders

John D. Saunders is a Web Designer and Founder at 5Four Digital, CMO at Kiddie Kredit and an Automation Expert with a decade of experience building brands online. He's worked with clients including Audi, NAACP and Apps Without Code.