Teaching Your Kids About Money: Lessons for All Ages

published April 1, 2025

Hey fellow parents!

April is Financial Literacy Month, which can make it the perfect time to start teaching our kids about money and how to plan for their future. As parents, we all want to ensure our children are set up for success – not just for college, but for life. The best way to do that? Start early and teach them financial skills that can grow with them!

Here are some age-appropriate strategies to help your kids build smart money habits:

Ages 5-10: Early Starters

At this stage, kids are naturally curious and eager to learn. This can be the perfect time to introduce basic financial concepts in a fun and simple way.

• Start an Allowance – Teach your kids how small savings can add up! Whether it’s for a toy, a video game, or something bigger down the road (like college), this builds a habit of setting money aside.

• Be a Budgeting Example – Show them the difference between needs and wants using real-life examples. When shopping, explain why you’re choosing certain items over others.

• Open and contribute to a 529 College Savings Plan – Even a small amount can add up over time. Introduce them to the idea of saving for the future while they’re still young.

Ages 11-15: Developing Money Skills

As kids grow older, they become more independent in their financial decisions. This can be a great time to help them think critically about spending and saving.

• Show How to Comparison Shop – Whether it’s clothes, electronics, or everyday items, teach them how to find the best deals. This skill can come in handy when they start thinking about bigger expenses like college tuition.

• Teach Opportunity Cost – Help them understand that spending money on a toy or game today might mean waiting longer for something bigger in the future. This lesson is key in making thoughtful financial choices.

• Instill a Savings Mindset – Encourage them to put part of their birthday or holiday money into their 529 plan. Even small contributions can add up and reinforce the habit of saving.

Ages 15+: Preparing for College & Beyond!

Now that college is on the horizon, it can be a great time to help your child take a more active role in planning for their financial future.

• Assess and Explore – Review your 529 plan savings together and explore scholarships, grants, and other ways to pay for college. Show them how planning ahead can make a big difference!

• Make a Plan – Help them set a budget for their college years. Discuss costs like tuition, books, and living expenses, and encourage them to take responsibility for some of their spending.

• Real Life Learning – A first job or internship is a great way for students to learn about managing money. Consider looking at a paystub with your child and noting the difference between gross and net pay. Ask them to reflect on the differences between entry-level jobs, and those that require more education and experience.

Every bit of financial preparation can empower your child with lifelong money skills. By teaching these lessons early, you can help set them up for success – not just in college but for life.

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Footnotes

1. To learn more about Wisconsin’s Edvest 529 College Savings Plan, its investment objectives, risks, charges and expenses, see the Plan Description at Edvest.com before investing. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for Wisconsin's Edvest 529 College Savings Plan.

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