Personal Finance Education For Children

Introduction Lesson 2 

Lesson One: Allowances and Spending Plans

Children in grades three through six are capable of managing small amounts of money. They can divide their money into several categories, including "spend," "save," and "give." At the same time, they can spend their money and keep a record of what was spent.  This lesson provides an introduction to allowances for third through sixth graders. Allowances are the first step to understanding written spending plans or budgets. With guidance managing allowances in childhood, children can become financially responsible adults. Adults with effective budget skills create healthier family relationships and contribute to building a stronger economy.

Teacher's Guide - Lesson One: Allowances and Spending Plans

Student Guide - Lesson One: Allowances and Spending Plans

Lesson Two: Money Responsibility

Successful money management includes keeping records of money spent. This includes having the skills to know how much money is available, how much money has been spent, and how much money must be saved for future needs.  This lesson introduces elementary-aged children to the concept of being responsible for managing money through accurate record-keeping. It provides them with activities that demonstrate the need to be accountable for how they spend and save money.

Teachers Guide Lesson 2 Part 2: Money Responsibility

Student Guide Lesson 2 Part 2: Money Responsibility

Lesson Three: Saving and Investing

Part of learning about money management includes knowing where to put savings. The value of savings increases differently depending on how the money is managed. Placing savings in something beyond a savings account introduces students to the world of investments.  When they become adults, these students will have control over where they invest their money for retirement. It is important that they understand how to get the best growth for their money. At the same time, they need to understand the chances of losing that money in investments.  This lesson introduces students to the basics of how money grows through saving and investing. It introduces the concepts of financial risk and rates of return.

Teacher's Guide - Lesson Three: Saving and Investing

Student Guide - Lesson Three: Saving and Investing

Lesson Four: Comparison Shopping

This lesson introduces students to the concepts associated with comparison shopping and choosing the best option. The activities in this lesson will introduce students to the difference between needs versus wants. Students will also learn to scrutinize advertising to discover messages that may affect their decisions.

Teacher's Guide - Lesson four: Comparison Shopping

Student Guide - Lesson Four: Comparison Shopping