Personal Finance Education for Young Children
The following lessons provide guidance, lesson plans and activities for teachers interested in introducing four to seven year old children (pre-k to second grade) to early personal finance concepts.
Introduction
Lesson One: Making Spending Decisions
From birth, a child has choices. At first parents make the decisions, but before the end of the first year, children are capable of making some simple selections. If children are allowed to make easy choices as toddlers, then making decisions for themselves as they grow becomes less difficult. This lesson introduces guided, money-related, decision-making activities for children in preschool and kindergarten.
Teacher's Guide - Lesson One: Making Spending Decisions
Student Guide - Lesson One: Making Spending Decisions
Lesson Two: Spending Plans
Preschool-aged children are capable of learning simple spending plans. Early training in categorizing money establishes patterns for future money-management behavior. This lesson introduces children to the concept of dividing their money into categories, namely "save," "spend," and "share." We present activities that will help children understand that money is limited in quantity and must be divided for different purposes.
Teacher's Guide - Lesson Two: Spending Plans
Student Guide - Lesson Two: Spending Plans
Lesson Three: Earning Money
Adults must earn money to provide for their needs and wants. In this lesson children learn that money is earned and does not come free. Children also learn that money is limited in quantity. Early training in earning small amounts of money provides a foundation and understanding that work and money are connected.
Young children perform certain tasks at home just because they are part of the family or household. Children can do additional tasks to earn money for their spending plans. Children need to distinguish between shared responsibilities as members of a family and responsibilities that earn them money. This lesson introduces young children to activities and ideas for earning money. The money earned helps children meet their financial goals. Remember that the financial goals for a preschool-aged child may seem simple to an adult, but they are not simple to the child. Children learn the concept that money is a reward for working.
Teacher's Guide - Lesson Three: Earning Money
Student Guide - Lesson Three: Earning Money
Lesson Four: What is Money?
Money is the medium of exchange for most goods and services. Different coins and paper money have different values. Children need the ability to recognize the names and values of different coins and bills used in exchange for goods and services. This lesson helps children identify the names of coins and grasp their relative values in terms of purchasing power. We present games and activities that will help children acquire this knowledge.
Teacher's Guide - Lesson Four: What Is Money?
Student Guide - Lesson Four: What Is Money?