Have you ever handed your preschooler a dollar bill only for them to crumple it up, use it as a pretend tissue, or, heaven forbid, attempt to EAT it? Yep, same.
Teaching kids about money at this age can feel like trying to explain quantum physics to a squirrel. They barely grasp the concept of waiting for snack time, let alone saving up for something bigger than a lollipop. But here’s the thing: the earlier we start, the better they’ll understand the value of money later in life (and maybe, just maybe, they’ll stop begging for overpriced, must-have toys every time we step into Target).
So, how do we do it in a way that’s actually fun, sticks with them, and doesn’t drive us to hide in the pantry with a bag of chocolate chips? Keep reading, because I’ve got nine genius, stress-free ways to teach your little one about money, without turning into a boring finance professor.
1. Make It a Game
If there’s one thing preschoolers love, it’s playing pretend. Set up a mini “store” at home where they can “buy” items with play money. Use real snacks, stickers, or small toys as the items and let them practice handing over money in exchange. It’s a simple but powerful way to introduce spending, counting, and decision-making.
Pro Tip: If you don’t want to deal with tiny paper money pieces scattered all over your house, invest in a toy cash register (like the Learning Resources Pretend & Play Calculator Cash Register). It’s the holy grail of money games and will keep them entertained for hours.
2. Give Them an Allowance, Sort Of
I know, I know, giving preschoolers an allowance sounds a little extra. But hear me out: it doesn’t have to be cash. Create a token system where they earn stars, buttons, or stickers for simple tasks (like putting toys away or feeding the dog). At the end of the week, let them trade those tokens for small rewards.
This introduces the idea of working for what they want, rather than expecting everything to magically appear in their hands. (Looking at you, grandparents.)
3. Use a Clear Savings Jar
Piggy banks are cute, but let’s be honest, once the money goes in, preschoolers totally forget about it. Instead, use a clear jar so they can visually see their money growing. Every time they get a coin, let them put it in and watch their stash grow. Seeing is believing, even at age four!
4. Read Money-Themed Books Together
Storytime is already a part of your daily routine, so why not sneak in some money lessons? Books like Bunny Money by Rosemary Wells or A Dollar, A Penny, How Much and How Many? by Brian Cleary introduce financial concepts in a way kids actually understand (and enjoy). Plus, it’s one less episode of Bluey you have to sit through.
5. Turn Grocery Shopping into a Money Lesson
Instead of dodging your preschooler’s cart-grabbing hands and rushing through the aisles, turn shopping into a real-life money lesson. Give them a small budget ($2-$3) and let them pick out a snack or treat. Help them understand that they can’t buy everything they want, they have to make a choice.
This not only teaches them the value of money but also helps curb those checkout-line tantrums. Win-win.
6. Introduce the “Three Jars” Rule
Even at a young age, kids can start learning about saving, spending, and giving. Set up three jars labeled Spend, Save, and Share and let them divide their money when they receive it.
This simple system teaches them financial responsibility while also encouraging generosity (a.k.a. a lesson we all wish certain adults had learned).
7. Sing It, Clap It, Dance It!
Preschoolers remember songs better than lectures (if you’ve ever had a Cocomelon tune stuck in your head, you know what I mean). Teach them simple songs about money, something like:
“Money, money, let’s save today! Coins and dollars go a long way!”
It sounds silly, but repetition and rhythm make concepts stick. Plus, you get bonus mom points for making it fun!
8. Use a Magnetic Chore Chart with Money Rewards
This is where a game-changing product comes in: a magnetic chore chart. (Trust me, this will be your new best friend.) Not only does it keep kids accountable, but it also gives them a clear way to earn rewards.
They’ll quickly learn that doing small tasks = earning “money” (stickers, tokens, whatever works for you). And when they get older, this transitions perfectly into real allowances.
9. Lead by Example
Kids are little sponges, they pick up on everything we do (including how we handle money). If they see you swiping a card every five seconds with no explanation, they’ll think money just magically appears. Instead, talk through your purchases out loud: “Mommy is choosing this cereal because it’s on sale, which means we save money!”
When they see you making smart money choices, they’ll naturally start doing the same.
The Bottom Line (Literally)
Teaching preschoolers about money doesn’t have to be stressful or complicated. By making it fun, visual, and hands-on, they’ll start to grasp the basics, and you’ll be setting them up for future financial success without even realizing it.
So, what’s the first trick you’re going to try? And if you’re ready to take the next step, grab a toy cash register or magnetic chore chart today, it’s a game-changer! (Seriously, Amazon Prime it right now.)
Let’s raise money-smart kids together, one piggy bank at a time!