Financial Literacy for Kids: Everyday Activities That Build Money Confidence

Money is something that touches nearly every part of our lives, from where we live to how we spend our time. Yet, for many children and young adults, financial literacy isn’t something they will have had a chance to truly develop before venturing into the real world. 

At Pikes Peak Online School, we believe it’s never too early, or too late, to help students build money confidence. Financial literacy is one of the most important life skills we can pass on to the next generation, and the best part is that it doesn’t require a formal lesson plan. With a little intention, financial education can start at home with simple, everyday moments. 

“Helping students understand how money works empowers them to make better choices, not just as students, but as future professionals, entrepreneurs, and community members,” said Greg Terry, Principal at Pikes Peak Online School.  

“It’s not about complex terms or comprehensive spreadsheets. It’s about planting the seed early, through conversations, modeling, and real-life application,” adds Mr. Terry. 

Below are age-appropriate ideas to help families naturally introduce financial literacy in daily life: 

Understanding Wants vs. Needs 

While most experts recommend starting financial education around second or third grade, students can learn simple concepts like the difference between wants and needs at any age and still see a valuable impact. 

For example, a trip to the grocery store can become a learning opportunity. Start at home and shop in the pantry, take turns with your student practicing being the cashier, and talk about the value of items. It’s a fun way to lay the foundation for real-world money habits. 

Earning, Saving, and Spending 

As your student grows, it’s helpful to introduce the connection between work and money. Having transparency is key. Talk about what you do for work, how you’re paid, and how that money is used to cover both essential needs and fun extras. Keep it light and positive. Kids love hearing how their parents’ work ties back to their lives. 

Providing an allowance in exchange for completed chores is a great way for teens to experience the work-money connection firsthand. It gives them a sense of ownership and a chance to practice saving for something special. 

Even better? Let them handle the full process from saving and budgeting to paying at the register when you’re out shopping or dining out together. It builds confidence, teaches them how sales tax works, and helps develop social skills through polite interaction with cashiers. 

Are you planning a vacation? Invite your student into age-appropriate budget discussions. Show them how you plan for essentials like food and transportation and how setting aside money allows for fun extras. It’s a real-world way to show how budgeting supports better decision-making. 

Budgeting, Banking, and Building Credit 

Here’s where you can dive deeper into real-world money management. Encourage your student to find part-time work and help them open a checking and savings account. Talk about saving 10–20% of each paycheck into a high-yield savings account. This will create an early habit that builds long-term budgeting and financial confidence. 

Introduce the concept of credit: how credit cards work, what interest and late fees are, and the importance of responsible borrowing. If appropriate, consider adding your teen as an authorized user on your credit card so they can start building a credit history with your supervision. 

If college is on the horizon, now is also the time to talk about student loans and the reality of repayment. Here’s a comprehensive college planning guide resource to help families navigate the financial aid process with confidence. 

Modeling Good Habits 

At the end of the day, kids learn more from what we do than what we say. Modeling good financial habits such as saving consistently, budgeting with purpose, and making thoughtful spending decisions sets the tone for their own future behaviors. 

By teaching children how to distinguish between wants and needs, plan, and handle money with care, you’re equipping them with the tools to thrive in adulthood. 

“Financial literacy isn’t just a life skill, it’s a confidence booster,” added Mr. Terry. “When students feel empowered to manage money, they carry that confidence into so many other parts of life.” 

Our Educators Tips 

Teaching financial literacy doesn’t have to be complicated and it’s never too early to begin. With simple, consistent habits and honest conversations, families can lay the groundwork for lifelong money confidence. 

At Pikes Peak Online School, we’re proud to support students not only academically, but in gaining real-world skills they’ll carry for life. 

Back to Blog