Between the ages of 7 and 12, children begin to ask more questions about money—and those questions often become more complex. At this stage, parents can intentionally teach practical money skills, much like cooking or healthy eating. Take trips to stores without buying anything to practice “browsing without buying” and explain the difference between looking and purchasing. That simple habit helps children learn impulse control and sets the stage for more structured lessons about saving, spending and budgeting.
Money lessons adolescents should learn
This is also an ideal time to transition from piggy banks to a real bank account. Many parents open accounts for their children by age 12 to introduce them to banking basics: deposits, balances and the idea that money kept in a bank is safer and can grow. You can fund a first account with the child’s own savings or add a small parental contribution to get them started. Use the account to demonstrate choices—spend now on clothes or games, save for a longer-term goal like education, or split money between spending and saving.
Around ages 9 and 10, children are usually ready to understand simple budgeting. Show them a household budget so they see recurring monthly bills (utilities, internet, subscriptions) versus one-off expenses. Walk through how money flows in and out each month and why some expenses repeat while others don’t. That concrete example helps them see the logic of planning ahead.
Budgeting naturally leads to lessons about value and cost-saving: watching for sales, comparing prices, and using online tools to find better deals. Teach the occasional reward of saying “yes” after saying “no” regularly—surprise treats or bonuses teach children how to manage unexpected windfalls like gifts or extra allowance. When kids ask questions about money—what to do with it, how ATMs work, or why the family does or doesn’t own certain things—answer candidly. Asking them why they want to know helps uncover underlying concerns and gives you a chance to explain family choices in a way that builds security and understanding.
Keep conversations ongoing and age-appropriate. Ask children what jobs or careers interest them and what schooling or training those careers require. Discuss how a chosen profession might be paid for and what steps they can start taking now—saving for training, learning new skills, or finding part-time work when old enough. Family meetings can be an effective forum: include kids when discussing large financial decisions, such as choosing between a family vacation or saving for a major purchase. Involving children empowers them and shows how household money decisions affect the whole family.
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Checklist
Practical money moves to teach your child now:
❏ Open a savings account
Explain why saving for higher-cost items makes sense and how a bank account differs from a piggy bank. A debit card can wait until high school; start with a savings account to build the habit.
❏ Start a donation jar
Encourage giving by setting aside part of allowance for charity. Let kids choose a cause so they see how their contributions help others and understand the value of sharing.
❏ Create your own currency
Make family coupons that can be traded for extra screen time or privileges when children complete extra chores. This teaches the link between work and reward.
❏ Give them a raise
Pay allowance on a regular schedule and increase it yearly. Ask children to plan how they’ll use the additional money to encourage thoughtful decisions.
❏ Let them pack their own lunch
Have children plan and prepare school lunches and keep a shared grocery list where they can suggest items. This builds budgeting and meal-planning skills.
❏ Talk about jobs, goals and passions
Explain what you do for work and why you chose it. Ask what interests your child and discuss the education or training required and how to save for those costs.
❏ Share the bills
Show children household bills—utilities, cable, internet—and let them help add up the monthly budget. Seeing the numbers helps them understand where money goes.
❏ Let kids explore your wallet
Take out credit and bank cards and explain how each works and where the money comes from. Demonstrating the difference between cash, debit and credit builds financial literacy.
❏ Analyze an advertisement
Pause during commercials and talk about how ads make products appealing. Discuss marketing tactics and how to spot persuasive messages.
❏ Explain value
Compare a cheap pair of shoes with a well-made pair. Discuss materials, durability, and long-term cost to illustrate the idea of value versus price.
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More tips on raising money-wise kids
Ages 0 to 6: My first money moves »
Ages 13 to 17: Big kids, bigger budget »
Ages 18+: Preparing to launch »
Related student money resources:
- Helping small children learn about money
- How to educate teens about money
- What to look for in a kids’ bank account
- How government contributions can support education savings