How to Explain Money to Kids: 3 Simple Steps for Parents

It’s never too early to start teaching kids about money. The earlier you start, the better. What kids learn about money when they’re young will stay with them for the rest of their lives.

It can and will compound!

One of the greatest gifts you can give your kids is to prepare them to be responsible, empowered adults around money.

You see, in the past, money was very visible and tangible — coins and notes were what made buying and selling possible. However, with the advent of electronic banking, debit cards, credit cards, and apps, money has become increasingly invisible.

This makes it harder for kids to understand what money is, what it’s used for, and what it can do.

Trust me, I’ve been a kid myself and am now a father of two and uncle of ten and love to teach money to them.

Here are three simple steps that we use in our family to help our kids understand money:

1. Make Money Visible

If you want to teach money to kids, start by making it visible!

A few years ago I took my daughter shopping. In one of the shops, a toy grabbed her attention and she wanted…