When I had the opportunity to share money tips with my son’s kindergarten class, I settled on three major lessons. I thought I would choose from a personal finance topic that I usually write for adults, to save money, categorize costs, set goals – to make a child-friendly spin – some recurring themes.
What I didn’t realize was that the class also had lessons for me.
Here are the tips I shared and what I learned.
Save more than you earn
If you were a child, you got benefits or host a lemonade stand, spending everything you earned on new toys and other things might be appealing. However, saving some money for the future can be helpful. Because if you think about what you want more, you’ll get it later.
I wanted to tell you that saving money is fun and that you can even become a game to play with your family. Noel Wilkinson made this point when I interviewed him about financial literacy. He is the program coordinator for the Take Charge American Institute at the University of Arizona’s Norton Ecology School.
Young children learn best by playing with their parents, he says. That could mean running around the store to compare prices, or tracking savings goals in the fridge.
Learn the difference between desires and needs
If you are familiar with the concepts of desires and needs, it will be easier to save money. You might want a new toy, do you need it? You may actually need new shoes.
Your parents are probably taking care of that essentials for now, but you can practice learning to recognize the differences between desires and needs, in order to make better decisions about money and how to spend it.
When I rehearsed this part with my son, he suggested that I screamed out another noun and ask my classmates to declare whether they “want” or “need”. Together, we came up with a list. Clothes, food, candies, toys and games were one of the options.
Set money goals and talk about them
One of my favorite personal finance topics is goal setting. Enjoy the brainstorming process and then adjust your goals to be tangible and measured.
Goals for kids may include saving for new games or hoodies. Kindergarteners were encouraged to ask their parents about their financial goals, including holidays and college savings. I thought it could lead to a fun dinner conversation.
Turn to the story
I recently wrote an article on how to make learning about money fun and discovered through my research that storytelling plays an important role.
“There’s a reason why stories tell the lessons we’ve learned over the centuries,” says Jessie Jimenez, certified financial counselor in Oregon and founder of the website Cashtoons.com.
“The story is easy to remember and it’s easy to convey the message,” she adds.
Classics by Richard Scully (“What do people do all day?”) and Dr. Seuss (“sneetches”) can explain the fundamentals of economics and the free market, she adds.
For the final story time, I read Judith Viorst’s book, “Alexander Who Was Rich Last Sunday.” The story, almost 50 years ago, delves into the classic struggle of saving through a child’s perspective.
Alexander has the best intentions to save his money, but unexpected challenges appear and it becomes difficult to do anything other than spending it.
Surprise lesson
Like the hero of Viorst, my day didn’t go as planned.
The kindergartener sat in front of me and I began to explain my tips. They listened carefully, and sometimes nodded.
They eagerly cried out for answers about whether the item was a “need” or a “desired” and temporarily stopped to discuss where the clothing had fallen along the spectrum.
Then, in my explanation of the importance of saving, one child called out, “How about giving money to others?”
Her classmates participated. “What about people who need more money than us?” “How about donations?”
One child explained how the father taught her to divide allowances into different categories for others.
I quickly realized these students were right. I had ruled out one of all the most important money lessons. It’s a way to spend your money to help others.
I am grateful for the fact that these kindergarteners are so kind and thoughtful, so I am grateful for teaching them the lesson.
The next time I spoke to a group of children, I made a promise to them, I also emphasize the importance of generosity.
Kimberly Palmer writes for Nald Wallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.
What kindergarteners need to know about money originally appeared in Nerdwallet.
Original issue: May 7, 2025, 1:10pm EDT
