How to Teach Kids Financial Literacy Skills Every Day
- FitMoney Staff
- Mar 31
- 3 min read
As parents, we're always striving to ensure that our children are prepared to navigate the challenges of life. One significant area of challenge is managing finances. A strong grasp of financial concepts will be invaluable to children throughout their lives. But knowing where to start when teaching financial literacy can be tough. The good news is that everyday activities offer excellent chances to teach kids about managing money. In this post, we'll explore how everyday tasks can be used as opportunities to enhance your child's understanding of finance and improve their ability to make sound financial decisions in the future.

Grocery Shopping
Grocery shopping is a fantastic way to introduce your children to budgeting and planning. Before heading to the store, create a shopping list of necessary items and involve your children in deciding what to include. Encourage them to consider the cost of each item, compare name-brand products with generic options, and spot discounts or deals. This is also a great moment to talk about needs versus wants. Have them categorize items on your list as essentials (like medicine and toiletries) and non-essentials (like snacks or ice cream). Once at the store, allow them to pick out some items, ensuring they stick to the budget and priorities you've discussed. These values are all the basics of learning how to make sound financial decisions.
Household Chores
Paying an allowance for completing household chores is a great way to teach kids the value of work and the rewards that come from earning money. You can create a task chart, where each chore has a set amount of pay attached to it. This helps children understand that their effort has value, making them appreciate the importance of earning and saving money. You can also help them develop plans and even budgets for their earnings, fostering an early understanding of financial responsibility.

Budgeting for a Fun Activity
Involve your children in the planning and budgeting of a family outing. Let them have a say in what activity to choose and how much money should be allocated for it. Help them compare different options, taking into account both the cost and what fits into your overall family budget. Once a budget is in place, encourage them to stick to it. This experience teaches discipline and shows them that having fun doesn't have to break the bank.
Setting up a Savings Account
Open a savings account with your children, or even set aside money in a jar or piggy bank, to encourage them to save for things they want to buy. Help them set specific savings goals and a timeline to achieve those goals. Watching their savings grow will boost their confidence, and reaching their target will reinforce the importance of patience and the rewards of saving money.
Let Them Observe
Another way to teach financial lessons is by letting your children observe how household bills are paid and how you budget for larger expenses, such as vacations. When they see the process firsthand, they’ll gain a clearer understanding of the financial responsibilities that come with adulthood. These real-life experiences can help them connect their own spending decisions with larger family finances, teaching them the impact of financial choices and the importance of budgeting, saving, and making wise financial decisions.
Teaching kids about financial literacy doesn’t have to be a daunting task. Everyday activities, such as grocery shopping, doing chores, planning family outings, setting up savings accounts, and involving them in family financial decisions, can be wonderful learning opportunities. By introducing financial concepts at a young age, you're helping your children develop the skills they’ll need to manage money responsibly and successfully in the future.
For more resources on financial literacy for all ages, visit FitMoney and explore our programs for K-12 students. For younger kids (Grades K-6), check out the $uperSquad platform, which offers interactive videos, modules, and games to teach healthy financial habits. For older kids (Grades 7-12), the Financially Fit Certificate platform helps students develop important skills, from budgeting and saving to understanding loans and interest. Upon completion, they’ll receive a certification that can be valuable for future opportunities.
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