When I was young, once or twice a year my father would empty out the large wooden box where he threw his spare change every day, and together we would roll pennies, dimes, nickels, and quarters into neat, uniform cylinders and take them to the bank. I was always astonished at how much money the discarded change would add up to — it was a great, childhood example of a penny saved is a penny earned. When I thought I might do the same now that my kids are school age, I realized there’s just not much change to count. Almost every financial transaction I make is virtual — debit cards, Venmo, Apple Pay. I found myself wondering how on earth will they learn the value — or the weight, in coins — of a dollar?
These days, parents can put allowance on a child’s debit card with just a couple taps on a smartphone — no cash necessary. Easy, right? But how do we teach kids about money and all that it represents? These 12 books for tweens and teens can help.
Books for Kids and Teens
Get To Know: Money
by DK
As money and finances move into the digital era, parents and educators need to adjust how they teach children about it. This book is an excellent resource to help children learn about earning and budgeting money, using a bank account, and understanding cryptocurrency. It’s a must-have for teaching children financial literacy.
Show Me the Money: Big Questions About Finance
by Alvin Hall
Alvin Hall grew up in severe poverty in the Florida panhandle — then became a world-renowned financial trainer, expert, and author. In Show Me the Money, Hall shares his no-nonsense approach to money matters, including how the financial, business, and economic sectors of our society work.
Growing Money: A Complete Investing Guide for Kids
by Gail Karlitz and Debbie Honig
Are 12-year-olds too young to understand investing? Hardly, according to Gail Karlitz and Debbie Honig. This book breaks down the basics of bonds, stocks, mutual funds, and more, so that middle grade readers can grasp the principles of investing. Mom or dad might learn a thing or two as well.
by Heather Alexander, Laura D'Asaro, and Rose Wang, illustrated by Vanessa Flores
Shark Tank fans and aspiring entrepreneurs will love this novel inspired by real-life friends Rose Wang and Laura D’Asaro, the founders of Chirps chips. In the story, sixth-graders Hallie and Jay pair up for a business competition and get the idea to sell snacks made from bugs. Readers will learn about developing a business idea, pitching it, and managing inventory and finances.
by Elaine Scott, illustrated by David Clark
Kirkus calls Dollars & Sense “a sporty guide to the wide, weird world of money.” Indeed, this book covers basic economic concepts like supply and demand and inflation as well as the circ*mstance that led to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
DK Eyewitness Books: Money
by Joe Cribb
This one’s about money itself — the various coins and banknotes from countries around the world, and throughout history. Author Joe Cribb is what they call a numismatist, or a currency expert, and was the former “Keeper of Coins and Medals” at the British Museum.
The History of Money
by Martin Jenkins, illustrated by Satoshi Kitamura
This book is an excellent resource to help kids learn about money, its history, why we use it, and how it works. It takes readers through the ages and stages of how money became necessary and teaches them about interest, banks, and taxes.
Heads Up Money
by DK
For older teens with a basic understanding of money matters — how and why to save, the difference between wants and needs — there’s Heads Up Money. This book goes beyond “What is money?” to more prescient and timely questions like “What is the wage gap?” and discusses economic theories. It’s a big-picture view of money and its role in our modern world, rather than a personal finance how-to.
How Money Works: The Facts Visually Explained
by DK
For the visual learner who is interested in complex financial information, How Money Works will be indispensable. Facts and stats pepper the entire book — part of the How Things Work series — and help break down complex topics, like asset allocation and diversification (which I’ve never really understood).
More Money, Please: The Financial Secrets You Never Learned in School
by Scott Gamm
This is Money Management 101 for those who have recently left the nest, written by someone in their shoes. But not just anyone. At just 17, Scott Gamm created HelpSaveMyDollars.com — and quickly became a financial news commentator. He wrote this book in 2013 while he was still at the New York University Stern School of Business.
Editor’s Note: This article was originally published in 2018 and updated in 2022.
FAQs
Best for Basic Money Lessons: The Four Money Bears
The Four Money Bears (2015) was cited as the best book for kids by two members of the Investopedia Financial Review Board, both certified financial planners themselves.
How do you teach financial literacy to youth? ›
Here are some ways to help your child learn about the five key financial principles: earn, protect, spend, borrow, and save.
- Model good financial behavior. ...
- Help them find ways to earn money. ...
- Open a bank account to save some of their earnings. ...
- Set a budget and track spending. ...
- Apps and tools. ...
- Borrowing money. ...
- Discuss Investing.
Kids between the ages of 6 and 8 may start to understand how money works. "As soon as your child is receiving an allowance, he'll need a place to put his money," says Pearl. Make a trip to the bank an event. Help your child open a savings account, and encourage them to make regular deposits.
Why is financial literacy not taught in high school? ›
High schools might avoid teaching personal finance due to several reasons, including the perceived lack of relevance to students' current lives, the gap between financial literacy and financial responsibility, and the practical constraints of traditional teaching methods.
How do I start teaching financial literacy? ›
Talk about money
Here's one idea for how to teach your child financial responsibility: When you buy things with credit cards in front of your kids, show them the resulting bills—compound interest and all. It's a natural way to start building financial literacy for kids.
How do you teach kids about money and budgeting? ›
When they're little
- Introduce the value of money.
- Emphasize saving.
- Introduce them to investing.
- Encourage a summer job.
- Introduce them to credit.
- Consider a Roth IRA.
- Help them set a budget.
- Encourage them to stay invested.
Children learn about money by doing. By having your child actively participate in a trip to the grocery store, they can see how budgeting relates to shopping. You might open a savings account online to provide an opportunity to teach about saving money, especially if they see you are saving as well.
What is the free financial literacy program for kids? ›
FDIC Money Smart for Young People features four free age-appropriate curricula that promote financial understanding and are specifically designed for pre-kindergarten through 12th grade educators.
How to teach your child to be financially responsible? ›
How to Teach Preschoolers and Kindergartners About Money
- Use a clear jar for their savings. ...
- Set an example with your own money habits. ...
- Show them stuff costs money. ...
- Show them how opportunity cost works. ...
- Give commissions, not allowances. ...
- Avoid impulse buys. ...
- Stress the importance of giving. ...
- Teach them contentment.
Financial literacy for kids will help build their credit by understanding how to generate a positive history. This will help them get approved for a loan or credit card and pay down debt faster.
Financial literacy education goes beyond numbers and calculations; it fosters critical thinking and problem-solving skills essential for success in today's world. As students analyze financial scenarios, weigh trade-offs, and evaluate risks, they develop the ability to think critically and make strategic decisions.
How many states teach financial literacy in high school? ›
But before we get there, here's a quick overview: Only 25 states require students to take a stand-alone personal finance course in order to graduate.
Do American schools teach financial literacy? ›
According to the Council for Economic Education's latest biennial Survey of the States, more than two-thirds of all states are now requiring personal finance classes for high school graduation – up dramatically from 2022 when fewer than half the states had such mandates.
What is the best method in teaching financial literacy? ›
Give Students Real-Life Scenarios to Solve
Providing real-life scenarios to students is an excellent way to teach financial literacy. You can help your students understand how to calculate taxes, create a budget, or develop a purchase plan.
What age should you start teaching financial literacy? ›
He recommends teaching five- to eight-year-olds “very, very basic things” like that money has value and how choices made with it have an impact. For eight to 12-year-olds topics can be more complex, Landolt believes. “You can talk about the different types or uses of money.
How do I teach my child to be financially responsible? ›
How to Teach Preschoolers and Kindergartners About Money
- Use a clear jar for their savings. ...
- Set an example with your own money habits. ...
- Show them stuff costs money. ...
- Show them how opportunity cost works. ...
- Give commissions, not allowances. ...
- Avoid impulse buys. ...
- Stress the importance of giving. ...
- Teach them contentment.
- Watch, Listen, or Read Up on Financial Topics.
- Take a Finance Course.
- Hit the Books Again.
- Talk to Financial Services Pros.
- Ready for More?
- An Evolving Industry.
- Where's the Best Place Online to Start Learning About Finance?
- What Areas of Finance Should I Learn About?
Financial knowledge is power
Talking about money in positive ways early on helps kids and teens cultivate an abundance mindset. They will learn that they can earn money through hard work. With time and effort, they can earn more money and use that money to help reach their goals.
