SALT LAKE CITY — Research out of Washington University found that the more parents teach and talk about finances when kids are young, the more likely those kids will be able to manage a mortgage and avoid financial setbacks as an adult.
Amanda Christensen with Utah State University Extension said you don't have to be a financial expert yourself to teach kids about money.
“The younger we start, the better,” she explained.
She emphasized that you don't have to sit down and have a formal finance lesson with kids to make an impact. They really just need everyday exposure.
“Just regular everyday conversations about money … that’s where our kids need to be,” Christensen said.
She broke down some age-appropriate money lessons.
Ages 3-6
What Money Is
Needs vs. Wants
Money is Earned Through Work
Even preschoolers can start learning about money.
“Introducing basic concepts like what money is, the difference between needs and wants … that money is earned through work,” Christensen explained.
How to Teach
Play Pretend Store
Use a Piggy Bank
Involve Them in Transactions
At this stage, learning looks like play and experience, like playing store or using a piggy bank. Real‑world moments also matter.
“Going to the grocery store with cash … let them do it,” Christensen said.
These small interactions help kids understand money as something tangible and purposeful.
Christensen emphasized that it's not always about what you teach, but how you say it.
“Instead of saying, ‘We can’t afford that,’ just shift to, ‘We’re choosing to spend our money on something else,’” she recommended.
That small difference changes how kids view money. It helps them grow up seeing money as something they can manage, not just something they might not have.
“Shifting that conversation from scarcity to choice … can make a big difference,” Christensen noted.
Ages 7-11
Saving Toward Goals
Practicing with Budgets
Comparing Prices
Learning Delayed Gratification
As kids get older, financial lessons become more hands‑on.
“Kids are really able to learn to save … set a money goal and work towards it,” Christensen explained.
This is the time to introduce budgeting and comparing prices. It’s also the right stage for something many parents try to help kids avoid: mistakes.
“This is actually the age we want kids to … have experience failing with money,” she said.
With lesser amounts of money, kids can safely learn cause and effect without high‑stakes consequences.
Christensen also acknowledged that allowance can be a controversial topic, but she encouraged rethinking its purpose. Whether it’s tied to chores or not, the goal is giving kids ownership and their own money to manage. It allows them to practice spending, saving and decision‑making. She said it’s less about earning a reward and more about building experience.
Ages 12 & up
Credit Cards
Interest
Budgeting
Paychecks
Investing
By the time kids reach their teenage years, the focus shifts to more complex skills.
“We’ve gotta start talking about credit cards and interest,” Christensen said.
It's important for teens to understand these concepts before they’re faced with real financial decisions. Teens also benefit from learning how money actually works in daily life. Conversations about what a pay stub is, budgeting, investing and managing paychecks help bridge the gap between theory and real‑world responsibility.
How to Approach These Conversations
Plan a Vacation Budget
Review a Paycheck Stub
Compare Car Insurance
Help Research College Costs & Student Loans
Get a copy of the guidebook at finance.usu.edu.
This story was adapted from a TV broadcast script using artificial intelligence. Every story, including those adapted with AI, is reviewed by a human editor before publication to ensure that KSL's editorial standards are upheld.
