Money Smart Kids - Ages 3-5

SVDCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.

Ages 3-5

The time to begin teaching money-management skills is whenever your kids start showing curiosity about money. Start by explaining what money is. Money can be defined as anything a group of people accepts in exchange for goods or services. Let your preschoolers handle different coins and bills, and point out the values of each. Show how money is exchanged for other things by playing "store" or "restaurant." Basic math skills are essential to money management, so make sure your kids have a strong math foundation. Play counting games and board games with play money to build math proficiency.

Build Responsibility

When your kids start kindergarten, start talking about adult obligations relating to money. For example, tell them why you go to work every day, and allow them to visit your workplace. Talk about other jobs people have, and point out workers you see (such as wait staff or police officers). Show your kids a check you wrote and explain that it func­tions as payment, just like money. Take them to the credit union and ATM and demonstrate making deposits and withdrawals. Show them your monthly utility bills and how you pay them by writing and mailing a check. At tax time, explain how you have to submit a tax form. All of these activities will form a foundation for your children's money responsibility.

You can teach your children how to save money by partnering with SVDCU. Open an account today with a minimum deposit of $10.00. They then become a member of the "Very Important Kid" Club.