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Financial Education for Children: How to Teach Them from an Early Age

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Discover how to teach financial education to children in a fun and effective way. Learn practical strategies to raise financially aware and responsible adults from an early age.

How to Teach Financial Education to Children in a Fun and Effective Way

Introduction

Have you ever thought that adult financial habits start developing in childhood? Teaching financial education early is essential to prepare children for a future with more awareness, freedom, and responsibility with money.

In this article from Dicas de Bolso, you will learn:

  • Why financial education should start early

  • How to adapt the topic for each age group

  • Practical tips to apply daily with your kids or students


Why Teach Financial Education to Children?

Most adults never received formal financial guidance. The result? Millions of Brazilians in debt, spending impulsively, and living without planning.

Teaching children early helps to:

  • Build a healthy relationship with money

  • Teach the value of effort and achievement

  • Prepare them to handle frustrations and make conscious choices

  • Encourage the habit of saving, planning, and investing

📌 The earlier you start, the more natural the process will be.


How to Adapt Financial Education by Age?

Ages 3 to 6 – Introduction to the Concept of Money

  • Explain what money is and what it’s used for

  • Use toys and pretend shopping games

  • Show the difference between “having everything” and “choosing what to buy”

Suggested activity:
Play store with fake bills, where the child “buys” items using a limited amount.

Ages 7 to 10 – Starting to Handle Allowance

  • Introduce the concept of allowance or educational weekly money

  • Teach about choices: spend, save, or donate

  • Begin discussing simple financial planning

Suggested activity:
Set up three jars: “spend now,” “save for later,” and “donate.” Help the child divide money among them.

Ages 11 to 14 – Budget and Goals

  • Teach how to create a simple budget

  • Encourage setting financial goals (e.g., saving for something special)

  • Present concepts of price, value, and product comparison

Suggested activity:
Help the child plan the purchase of a desired item, tracking progress weekly.

Ages 15 to 17 – Introduction to Investments and Credit

  • Explain how interest and credit cards work

  • Introduce basic investment concepts (Treasury Direct, savings accounts, CDBs)

  • Talk about consumer traps and the dangers of debt

Suggested activity:
Simulate credit card installment purchases to teach about interest and financial consequences.


Practical Tips for Teaching Daily

1. Lead by Example

Children learn more by what they see than by what they hear. If you manage money well, they are more likely to follow.

2. Use Allowance as a Learning Tool

It’s not just about giving money but teaching responsibility and decision-making.

3. Let the Child Make Mistakes (Within Limits)

If they spend everything on frivolities and ask for more immediately, don’t give it. Frustration is a great teacher.

4. Use Books, Games, and Educational Cartoons

  • Children’s books about money

  • Games like Monopoly, Cashflow, or educational apps

  • Cartoon episodes addressing consumption and financial choices

5. Set Family Financial Goals

How about saving money together for a trip or a shared purchase? The child learns that money requires time and effort.


Conclusion

Teaching financial education to children is a gift that lasts a lifetime. With patience, good examples, and small daily practices, you will be raising more aware, prepared, and financially free adults.

And remember: it’s never too early to start!