Teaching Money Skills to Children

Youngsters learn money management attitudes and behaviors by watching family members and others. To help guide their financial literacy development, involve children in the shopping process using these steps:

  1. Have children help in the creation of the shopping list. Sit down together with paper or an app to list what you need. Talk through your list with your kids noting items that are low on in the household as well as things bought regularly. Have children check cabinets and refrigerator to determine things they use.
  2. While making your list, talk about a budget. Explain the need to keep track of how much is spent on groceries so there is enough money for household expenses. Make clear that a grocery list helps make sure you don’t overspend.
  3. Talk while shopping to explain brands you prefer and how sale prices or coupons might affect purchases. Also communicate why you choose certain stores for your shopping.  As you select items explain why you’re buying that one instead of a similar item.  Older children can be asked to comparison shop among different brands.
  4. While shopping, refer back to your budget. This will help you decide to buy an item now or wait until a later time.
  5. Provide explanations of buying choices. To avoid surprises, estimate your total before going to the cash register. Also explain different payment methods, such as a debit card, which subtracts money from your bank account right away.

Discussion of various decision-making elements will help kids learn shopping and money management skills they will need.  Thinking out loud can clarify what you’re doing and why when in the store, paying bills, or shopping online.

For additional information on teaching money skills to children, go to:

Grocery Shopping Tips

Money skills, by age.

Teaching Suggestions

  • Have students visit stores and explain to friends why they buy certain items and brands.
  • Have students create a visual presentation (using computer software or a poster) to communicate learning experiences for teaching wise buying to others.

 Discussion Questions 

  1. What experiences did you have growing up that helped you learn financial literacy and wise money management skills?
  2. Describe other methods that might be used to teach shopping and money management skills to young people and others who might lack these abilities.

Online Shopping: Tips to keep close to your wallet

Online shopping makes it easy and convenient to search for – and buy – the must have items on your wish list.  Before you buy, follow these tips on avoiding hassles, getting the right product at the right price, and protecting your financial information.

To make sure you’re getting the best deal, compare products.  Do research online, check product comparison sites, and read online reviews.

Confirm that the seller is legit.  Look for reviews about their reputation and customer service, and be sure you can contact the seller if you have a dispute.

Pay by credit card to ensure added protections, and never mail cash or wire money to online sellers.

Keep records of online transactions until you get the goods.

Report online shopping fraud.

For more information, click here.

Teaching Suggestions

  • Ask students if they have shopped online. If so, what have been their experiences?
  • Why is it important to confirm the online seller’s physical address and phone number?
  • If you return an item, who pays the shipping costs or restocking fee?

Discussion Questions

  1. What should you do if you get an e-mail or pop-up message that asks for your financial information while you are browsing?
  2. Why is it important to read the seller’s description of the product closely, especially the fine print?
  3. Why is e-mail not a secure method of transmitting financial information, such as, your credit card, checking account, or Social Security number?
  4. Where can you file a complaint to report online shopping fraud?

Bitcoins or a Credit Card?

Do you shop online?  Have you seen websites that allow you to pay with bitcoins?

Beware of the Bitcoin (virtual currency) risks!!

  • Values go up and down based on demand.
  • Payments made with virtual currencies aren’t reversible.
  • You do not have the same legal protections as more traditional payment methods.

For more information, click here.

Teaching Suggestions

  • Ask students if they have purchased products or services with bitcoins and what has been their experience.
  • Ask students if they check out the seller’s reputation before a purchase with bitcoins.

Discussion Questions

  1. Should the payment with bitcoins go directly to the seller or a payment processor?
  2. Does a payment through a payment processor offer any protections?
  3. If you receive damaged merchandise, will you get a refund in virtual currency, U.S. dollars, or store credit?
  4. If you have a problem with bitcoin-related product or service, where should you file a complaint?