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Updated: Apr 16

Financial literacy for kids and teens

You may have heard that money can't buy happiness, and while that might be true, your child or teen's ability to manage money can significantly and positively impact their future and quality of life. Studies have shown that people with healthy money habits and attitudes usually have:

  • More self-confidence

  • More time financial freedom

  • Less stress

  • Healthier relationships with their families.

If you desire these traits for your children, then it is important to begin teaching them the fundamentals and tenants of financial literacy now.

There is an old saying that there is "more caught than taught." Meaning, that your child or teen is more likely to follow your example than just your advice. Below are several areas you can not only teach your children financial literacy, but demonstrate it as well.


While financial education is an absolute necessity, in order to effectively manage money, you first have to earn it. You can teach your child the importance of earning money by compensating them for chores around the house, hiring them under your own company, or showing them how to start their own low-cost service based business such as babysitting, walking dogs, or lawn services.


When it comes to investing for kids or teens, once they begin earning money, now it is time to teach them how to manage it. Come along side of them and show them how to create a budget. Most importantly, make it fun! Pen and paper will do just fine until they are ready to move onto more money savvy apps. This is the perfect time to also have conversations such as learning how to distinguish between needs and wants.


Once your child or teen has learned how to decipher needs versus their wants, it's time to teach them how to pay themselves first. And no, this doesn't mean going on a shopping spree! This means showing them the importance of saving for a "rainy day" and learning how to set some of their earned income aside for emergencies.


After learning how to pay themselves first by establishing and opening a savings account, it's time to graduate to learning how to invest. Your children will learn concepts such as compound interest and how it is extremely important to building wealth as well as diversifying their portfolios, appreciation, dividends and much more.

There are several accounts that you can open on behalf of your child or teen right now so they can began investing including college savings accounts, custodial retirement accounts, or a UGMA/UTMA custodial brokerage account. You and your child can begin purchasing a range of equities such as individual stocks, index funds, mutual funds, ETFs etc . The best way to do this is together. You can start by downloading our Free Stock Guide to begin the conversation in learning how to invest in the stock market.

We get it. Sometimes talking about money can be awkward and difficult. Not to mention investing can sometimes sound like a foreign language. As your teaching your child these concepts, don't forget to make it fun! Get creative! Thankfully, this also why KidVestors has made financial education and investing not only fun but easy to understand at any grade level.

Never underestimate the power that financial literacy for kids and teens could have to shape our economy and our world.




  • Enroll your student in our financial literacy course and app here.  

  • Subscribe to KidVestors TV 

  • If your school or group is looking for a finance curriculum to teach your students about how to manage money, start here to learn more on how to bring KidVestors to your classrooms!

  • Parents, teach your kids money and make money conversations normal in your household by visiting here.


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