Financial Literacy for Kids & Teens: Saving, Investing, Budgeting & Beyond

Welcome to our comprehensive guide on financial literacy for kids and teens: Saving, Investing, Budgeting & Beyond. In today’s complex world, it is crucial to equip young minds with essential money management skills. This article covers key topics such as teaching kids the importance of saving, introducing them to the world of investing, and guiding them in creating effective budgets.

We also delve into advanced concepts that go beyond the basics, empowering teens to make informed financial decisions. By starting early, we can instill lifelong financial intelligence in the next generation. To secure your family’s financial well-being, enter your zip code now and compare rates from the best insurance providers.Let’s pave the way for a brighter financial future for our children.

Saving

When should kids start learning about saving money? The experts say, the sooner the better. A child in kindergarten can learn that you need money to buy things, people earn money by working for it, and money must be saved to buy more expensive things.

A child who must buy things with their own money might quickly learn the difference between “want” and “need.” As early as sixth grade, a kid can learn about putting savings in the bank, compound interest, and making their money grow (rather than blowing it on frivolous purchases). Teaching kids about saving their money will pay huge dividends when kids become teenagers and it’s time to save money for college. Teenagers in particular are targets for opportunistic credit card companies, and need to know that credit cards are not free money.

• The Mint (for kids)
• The Mint (for teens)
• Practical Money Skills
• Rich Kid Smart Kid
• KidsBank
• ThreeJars
• Teens and Money at Motley Fool
• New Ways to Save at Teen Vogue

Budgeting

Young children have little need for budgeting their own money, but teaching them how to plan finances becomes more important as they grow older. Learning to budget at a young age can help avoid financial pitfalls later in life and give kids and teens the tools they need to prosper. Parents can include their kids in planning the family budget as a fun bonding activity. Financial planning becomes a critical life skill when teenagers get their first credit cards and leave for college. Some financial education might prevent panicked late-night calls to parents because they’re out of cash.

• Sense and Dollars
• ItAllAddsUp
• Money Management for Teens at FDIC
• Creating a Budget at PBS Kids
• Money Lessons for Children to Master at Bankrate
• How to Teach Young Kids Budgeting Habits at Lifehacker
• Budget Worksheets for Kids and Teens
• Top 10 Budgeting Basics for Teens
• Teaching Financial Literacy to Teens at Investopedia
• Teens and Money at BalanceTrack
• Teens and Money from Family Education

Investing

At first glance, investing might seem like an advanced topic for kids to learn – but you might be surprised. Once a child gets beyond the basics of the piggy bank and savings account, it’s not a drastic leap to stocks and bonds. Learning about investing teaches kids and teens about risk and reward, tracking investments, and how the market works. Planning investments is a family activity that can pay off figurative and literal dividends down the road!

• Teens Guide to Money
• Save and Invest
• Start Investing at Motley Fool
• Teens Guide to Investing
• Online Stock Trading for Teens
• Teaching Kids About Investing at CNN Money
• Best Investments for Teenagers at Consumerism Commentary
• Money Games for Teenagers
• Teaching Children About Stocks

Consumer Education and Financial Learning

Learning to become responsible consumers can be an important part of a child’s financial literacy. Comparison shopping, making smart consumer choices, and careful consideration of major purchases don’t always come naturally. These are learned behaviors that work best when a child or teen is armed with information. As teens approach adulthood, issues like car and personal insurance, paying premiums, and preparing for the future become more important. These resources will help kids and teens make informed choices and get the most out of the money they’ve worked so hard to earn, save, and invest.

• You Are Here
• Don’t Buy It!
• Wise Buys for Teens
• LifeSmarts
• JumpStart Coalition
• Consumer Jungle
• Consumer Information for Teens at FTC 
• Money As You Grow
• H.I.P. Pocket Change
• Finance in the Classroom
• Teen Business

Entrepreneurship

Beyond the basics of saving, budgeting and investing lies the ultimate in financial education for young people: running their own business. With the right training and resources, kids can move far beyond the corner lemonade stand or cookie-selling venture. Fostering an early interest in entrepreneurship can forge a powerful career path that leads to confidence, creativity and financial independence.

• Kidpreneurs
• Bizkids
• Biz in a Box
• Teaching Kids Business
• Bizworld
• The Startup Kids (documentary)
• Young Entrepreneurs
• Young Entrepreneurs series at the Small Business Administration
• Resources at Juniorbiz
• Let’s Raise Kids to be Entrepreneurs (TED talk)