top of page

Integrating Financial Literacy into Playtime: A Guide for Parents and Educators

Updated: Dec 27, 2023

Hey parents and educators! Let's talk about something that doesn't always make it into the playroom but is super important for our kids' future: financial literacy. As someone who is helping little minds grasp money matters, I'm here to share some fun and engaging ways to weave financial lessons into playtime. Trust me, it's never too early to start, and it's definitely more fun than you might think!


Table of Contents


Kids learning about finances through games in the play store

Understanding Financial Literacy for Kids

What Is Financial Literacy for Kids?

Financial literacy for kids goes beyond just counting coins; it's about instilling a holistic understanding and responsible attitude towards money. From recognizing the value of different denominations to understanding how money can grow through saving and investing, it's a comprehensive skill set.

Examples of Financial Literacy Skills:

  • Budgeting: Teaching children how to allocate their allowance or gift money to different categories like saving, spending, and sharing. For example, they could save 50%, spend 40%, and donate 10% to a cause they care about.

  • Making Smart Spending Choices: Helping kids understand the difference between needs and wants. This includes discussions on why it’s important to prioritize needs (like school supplies) over wants (like the latest toy).

  • Understanding Savings: Introducing the concept of a savings account and how interest works. You could illustrate this by showing them how their saved money can grow over time in a bank account.

Why Start Early?

Early Habits Stick

  • Statistical Insight: A study by the University of Cambridge found that money habits in children are formed by the age of 7. Starting early capitalizes on this critical developmental window.

  • Language Learning Analogy: Just as kids pick up languages more easily at a young age, financial concepts also become ingrained more naturally when introduced early.

Prepares for the Future

  • Long-Term Impact: A study by the National Endowment for Financial Education highlighted that children who learn about money management are more likely to be financially stable adults.

  • Real-World Skills: Understanding money prepares them for real-life situations, like managing a budget in college or saving for their first car.

Builds Confidence

  • Confidence in Decision Making: Kids who are financially literate feel more empowered to make independent choices regarding money, whether it’s about buying a snack or saving for a new game.

  • Empirical Data: Research indicates that financial education enhances the financial capability of young people, leading to better decision-making when faced with financial choices.

Which method below do you prefer for teaching your kids about money?

  • Role-Playing Games

  • Board Games

  • DIY Projects or businesses

  • Family discussions

Age-Appropriate Financial Concepts

Teaching financial concepts effectively means tailoring the lessons to the developmental stages and understanding of children. Let's break down what financial literacy looks like at different ages, with concrete examples and strategies.

Tailoring Lessons to Different Ages

Ages 3-5: The Basics

  • Identifying Money: Start with teaching them to recognize and name coins and bills. This can be done through fun games like matching or sorting different denominations.

  • Earning and Saving: Introduce the concept of earning through small chores and the idea of saving in a piggy bank. For example, they could earn a coin for tidying up their toys, instilling the basic idea of work and reward.

  • Simple Spending Decisions: Engage them in simple decisions like choosing between two low-cost items, teaching them to make choices based on what they have.

Ages 6-9: Expanding Knowledge

  • Budgeting Basics: Introduce a basic budget for their allowance. Teach them to allocate portions for different purposes - like saving, spending, and sharing.

  • Understanding Value: Discuss the concept of value beyond price. Use examples like comparing the longevity and utility of toys to help them understand why some items are worth saving for.

  • Simple Transactions: Involve them in small purchases, explaining the transaction process, change received, and the importance of receipts.

Ages 10-12: Building Skills

  • Introduction to Investing: Discuss basic investment concepts like bonds or simple stock market principles. Use real-world examples like a favorite family restaurant that’s a part of a public company.

  • Long-term Savings: Encourage them to set longer-term financial goals, such as saving for a high-value item or their education. Teach them about interest and how savings can grow over time.

  • Basic Financial Planning: Introduce them to concepts like emergency funds and planning for unexpected expenses. Use scenarios or role-playing to illustrate these ideas.

families discussing learning how to teach finance through games

Playtime Activities for Financial Learning

Integrating financial literacy into playtime can be both enjoyable and educational. Here are some engaging activities and games that can help children learn financial concepts in a fun and interactive way.

For a more detailed discussion around why playtime is important for learning financial concepts, consider our article "The Power of Play: How Games Can Teach Kids About Finance"!

Financial Games for Kids

Role-Playing Games

  • Playing Store: Set up a pretend store at home where kids can buy and sell items using play money. This helps them understand the value of goods, the concept of pricing, and making change.

  • Banker and Customer: Create a pretend bank where kids can learn about deposits, withdrawals, and the basics of how a bank operates.

  • Restaurant Play: Running a pretend restaurant can teach pricing, budgeting for ingredients, and the concept of profit and loss.

Board Games

  • Monopoly: This classic game is excellent for older kids to learn about real estate, rent, mortgages, and managing money.

  • The Game of Life: Offers a fun way to discuss earnings, loans, insurance, and the financial impacts of life events.

  • Payday: Teaches budgeting and the importance of paying bills on time.

DIY Activities

  • Homemade Piggy Bank: Crafting a piggy bank from a simple jar or box can be a fun project. It also provides a tangible place for kids to save their money.

  • Budget Chart: Help kids create a simple budget chart or a savings tracker. This visual aid can be a motivating way for them to see their progress towards a savings goal.

  • Financial Flashcards: Create flashcards with basic financial terms and concepts. Make it a game to match terms with their meanings or examples.

Interactive Online Resources

  • Financial Apps and Websites: There are several child-friendly apps and websites designed to teach financial concepts through interactive games and simulations.

  • Virtual Stock Market Games: Older children can benefit from mock stock market games, which teach them about investing, market fluctuations, and risk management.

Take a look at our article "7 Interactive Video Games That Teach Kids Real-World Money Skills" to learn more!

My First Finance Books teach personal finance in a fun and informative way!
My First Finance Books teach personal finance in a fun and informative way!

Everyday Opportunities to Teach Finance

Integrating Lessons into Daily Life

When it comes to teaching financial literacy, everyday life is filled with teachable moments. Let’s explore how you can turn daily activities into valuable financial lessons for your kids.

Shopping and Budgeting

  • Grocery Shopping: This is a fantastic opportunity for a practical lesson in budgeting. Before heading to the store, sit down with your child and plan the shopping list. Discuss the budget and how to make choices based on it. For example, if your child wants a particular snack, compare prices and discuss why choosing a less expensive option might be a good idea. This teaches them the value of money and the skill of price comparison.

    • Key Points:

      • Planning a Shopping List: Involves decision-making and prioritization.

      • Comparing Prices: Helps understand value and make smart choices.

      • Staying Within Budget: Teaches constraint and the importance of budgeting.

  • Saving for a Toy or a Game: Encourage your child to save for something they really want, like a new toy or a video game. This can be a great way to teach them about delayed gratification and saving. You can even introduce a simple savings chart where they can track their progress, giving them a visual representation of their goal and the satisfaction of reaching it.

    • Key Points:

      • Goal Setting: Helps in understanding long-term rewards.

      • Tracking Savings: Gives a sense of achievement and teaches patience.

Family Discussions

  • Talk About Goals: Regular family discussions about financial goals can be very enlightening for kids. Share your own goals, like saving for a family vacation or a new car, and explain the steps you’re taking to achieve them. This helps kids understand that financial planning is a regular part of adult life and encourages them to think about their own goals.

    • Key Points:

      • Sharing Financial Goals: Makes the concept of saving more relatable.

      • Planning Together: Encourages participation and understanding.

Hands-on Money Management

  • Pocket Money: Providing a small amount of pocket money can be a powerful tool. It teaches kids about budgeting, saving, and even the basics of investing. For example, you can offer extra money for chores, simulating earning, or suggest that they save a portion of their allowance each week to buy something more significant in the future. The key is to guide them but also allow them to make their own spending decisions, and learn from them.

    • Key Points:

      • Earning Money: Teaches the value of work and money.

      • Saving Allowance: Introduces the concept of saving over time for bigger rewards.

      • Spending Decisions: Helps them learn from both good and bad spending choices.

Dad and daughter put coins into a DIY piggy bank

Overcoming Challenges

Teaching financial literacy to children can come with its own set of challenges. Let’s address some of these common hurdles and offer practical solutions to help parents and educators make the process smoother and more effective.

Addressing Common Hurdles

"My Kid Finds it Boring"

  • Make It Relatable: Connect financial concepts to your child's interests. For example, if they love video games, discuss the concept of in-game currencies and how managing them wisely can enhance their gaming experience.

  • Incorporate Technology: Utilize educational apps and online games that make learning about finance interactive and fun.

  • Hands-On Experience: Engage them in real-life financial decisions, like planning a small family event within a budget. This gives them a sense of responsibility and achievement.

"I'm Not a Finance Expert"

  • Use Available Resources: There are countless books, websites, and even local courses designed to teach financial literacy in an easy-to-understand way. You don’t need to be an expert; you just need to guide them using these resources.

  • Learn Together: Turn financial education into a joint venture. Learning alongside your child can be a rewarding experience and shows them that it’s okay not to have all the answers.

  • Seek External Help: Schools and community centers often have programs or workshops on financial literacy for different age groups.

"It's Too Early to Start"

  • Developmentally Appropriate Learning: Tailor the lessons to suit your child's age and comprehension level. For younger children, simple activities like identifying coins and playing store can be a great start.

  • Planting Seeds Early: Research shows that basic concepts of saving and spending can be introduced as early as three years old. Early exposure can lay a strong foundation for more complex topics later.

"How to Keep Up Consistency"

  • Integrate Into Routine: Make financial literacy a part of your daily routine, like discussing budgeting during grocery shopping or saving a portion of their allowance.

  • Set Clear Goals: Having clear, achievable goals for your child’s financial learning can help maintain focus and consistency. Celebrate when they reach these milestones.

  • Regular Check-ins: Have regular discussions about money, such as weekly family meetings to discuss finances, which keeps the topic active in their minds.


Wrapping up, integrating financial literacy into your kids' playtime doesn't have to be a chore. With a bit of creativity and the right tools, you can turn it into an enjoyable and rewarding experience. Remember, the skills they learn now will help them make wise financial decisions in the future. So let's get those little minds excited about money management!


Want Free Lesson Plans?

Visit our site and become a member! When you do, you'll get access to our member only section, including free downloads of Lesson Plans and Presentation slides to use when teaching personal finance to your children!

Interested in Our Books and Services? Click the link below to visit our store!

Become an Affiliate Seller!

Interested in Joining our team as an Affiliate Sales member? We offer a competitive 10% flat-rate commission on all sales!

Note: As an Amazon Associate I earn from qualifying purchases. These commissions are small and do not influence the content that appears in this blog.


bottom of page