Teaching Our Kids About Money

What’s the Best Age to Teach Kids About Money? 

As a homeschool parent, you’ve probably asked yourself, “When should I start teaching my child about money?”

When they learn to count?
When they get their first allowance?
When they hit their teens?

The surprising truth—backed by recent U.S. research - is that money habits form much earlier than most parents expect.

Here’s a breakdown of what the science says and how you can use it to set your child up for lifelong financial confidence.

Kids Start Forming Money Habits Earlier Than You Think

Studies show that kids start developing meaningful opinions about money at young ages.

A 2025 Penn State Extension review found that “children as young as five years old had meaningful opinions about spending and saving money.” 

Likewise, West Virginia University research reports that children who receive money lessons by age seven develop stronger lifelong money habits.

 

Meanwhile, a major 2024 Frontiers in Education review concluded that today’s kids aged 6–18 are navigating “the most financially turbulent and challenging world that we have ever seen.” 

Translation: Waiting until high school is much too late.

Ages 3–6: A Good Time to Start

Yes—preschoolers can learn about money.

Research highlighted by Flow Impact explains that key financial behaviors begin forming before age seven and that introducing money concepts as early as age three helps lock in healthy habits during a crucial developmental window. 

At this age, keep it simple. Focus on four basics:

• Earning (helping with small tasks)
• Spending
• Saving
• Giving

Penn State’s findings show that early feelings about spending and saving can influence financial behaviors well into adulthood. 

Ages 6–10: Building Understanding & Independence

Elementary-age children can grasp more sophisticated concepts—and they’re naturally curious.

A 2024 Frontiers in Education review highlights the importance of hands-on learning, parental involvement, and real-life money experiences for this age group. 

By now, kids can understand:

• That items have different values
• That people work to earn money
• The difference between needs and wants

These findings align with a 2024 Aflatoun program study showing that structured financial lessons significantly improve children’s saving, spending, and decision-making behaviors. 

Around Age 10: Time to Talk About Consequences

Around age 10, kids shift from emotional to more rational decision-making—making this the ideal time to expand their financial education.

This is when they should begin learning about:

• Credit and debt
• Budgeting
• Interest (especially compound interest!)
• Protecting personal information and avoiding scams

If you introduce your kids to these concepts at this age, they are more likely to develop long term healthy habits and avoid costly mistakes. 

Early Teens: Ready for Investing & Long-Term Thinking

By the teen years, kids can finally grasp abstract concepts like:

• Investing
• Stocks
• Real estate basics
• Retirement accounts
• Entrepreneurship
• 
  

Yet U.S. data shows many American teens aren’t prepared for the financial reality they’re entering.

EverFi’s 2025 nationwide survey found:

• Only 23–24% of teens feel prepared to follow a budget or manage spending
• 60% feel underprepared to manage or check their credit
• Many lack confidence using mobile banking or peer-to-peer payment apps safely
• 
  

Kids are engaging with money earlier than ever—but not necessarily learning how to manage it.

Why Ages 11–13 (Middle School) Are The Sweet Spot

By 6th–8th grade, most kids:

💵 Begin getting allowances or earning small incomes
🛒 Make independent spending decisions
📱 Use digital wallets or payment apps
⚠️ Face online ads, in-app purchases, and social pressure

According to the Consumer Financial Protection Bureau’s Money as You Grow framework, this age group benefits from real-world skill-building matched to their developmental stage—just as they’re starting to handle money on their own. 

At MoneyTime, this matches exactly what we see in U.S. classrooms. Middle school is the prime moment to create healthy habits and build financial confidence before teens face bigger financial decisions.

So… What’s the Best Age?

Start early—and keep building.

Here’s the research-backed roadmap:

Age & What They’re Ready to Learn

3–6

Basics of earning, spending, saving, giving

6–10

Value, trade-offs, needs vs. wants, simple money decisions

10–13

Budgeting, credit, interest, online safety

Teens

Investing, long-term planning, real-world financial tools

Financial education is not a one-time lesson. It’s a progression.
And starting early gives your kids the strongest possible foundation for the future.

The author of this post, Neil Edmond, is the CEO and program author of MoneyTime , an online financial literacy program for children 10 – 14 that works particularly well for homeschoolers. Neil lives in Christchurch, New Zealand and has committed his life to improving financial literacy for children around the world.