Teaching Financial Literacy to All Ages: Week 1 - Preschool

Financial literacy and money management habits can begin at a very young age. Since young children are always learning and observing the adults around them, you can have a tremendous impact on the small children you interact with or parent on a regular basis. 

One of the first things preschool aged children learn is how to count. Beginning with that basic is the first step toward financial literacy! Learning to count from one to ten leads to identifying more and less. 

Once your young child has a good grasp on counting, you may be able to begin simple addition, like 1 + 1 or 1 + 2. You can use things like the child's toys, rocks or leaves if you're outside, or even pieces of food at meal time. 

As your child grows and their play begins to imitate adult life more, you may way to role play shopping. While you can purchase pretend money and cash registers, there's always an opportunity to have some fun building your own store and cash register. This is a great time to start incorporating some real coins, teaching your child what each coin is named and its value. The concept of fractions, or cents versus dollars, may be a bit advanced for the pre-school aged child, but learning about the coins is an excellent first step toward future financial literacy.

Above all else, your example of spending, saving, and giving will shape your child's view of money and influence their early habits. 

Check back over the next few weeks for building financial literacy for your elementary, middle and high school, and college aged children and family members.