For many parents, the idea of teaching their preschoolers about money and banking seems daunting. However, it’s never too early to start teaching your children about money and the importance of financial responsibility.

Here are some tips for introducing your child to this world:

  • Introduce them to coins as soon as possible to learn how much a coin is worth in relation to paper currency.
  • Give them an allowance from a very young age to begin learning how saving works. This will help prepare them for when they grow up and have more independence over their finances. It’s also a good way for you as a parent to teach your kids that hard work pays off because you’ll be paying out the same amount of money to them each week no matter what they do.
  • Talk to them about how money works and introduce the idea of banking as soon as possible so that when you bring your children with you to your bank or credit union, they can learn firsthand about where all their hard-earned money goes.
  • Setting up a pretend store in your home is a fun way to begin to teach your children about the basics of commerce and how money is used in day-to-day situations. Let your kids “shop” for grocery items from your pantry, or set up their own store using their toys, and practice paying using real currency or play money.
  • Older preschoolers may be ready to talk about ways to save money, so take advantage of your Sunday paper or flyers that you receive in the mail to ask your children to clip coupons before you head out shopping together. You can use this time to discuss how to be a savvy shopper and ensure you’re not spending more than you have to when shopping.

Teach your children about tithing and charitable donations. Young children can begin to give by saving their change in a jar and then donating it after they’ve collected enough. Use examples such as contributing to their church collection, providing food to hungry people, or donating toys for kids who don’t have any.

With the continued rise of technology and the widespread availability of digital content, parents are adapting how they teach their children about money.

Fortunately, plenty of educational resources are available for parents interested in teaching kids about finance. Here are three to start your child’s financial education today:

  • Homey. a free app for iOS and Android, is a fun, interactive way to get children thinking about money. The app enables you to set responsibilities and paid jobs for each family member and manage their privileges, rewards, and allowance. You can demonstrate to your children how money is earned and show them how to set and work towards long-term savings goals.
  • Younger kids can learn about money and have fun on Practical Money Skills Play. This site features games that teach various money skills. Kids can have fun with Cash Puzzler, a game that cuts a picture of a $1, $5, $10, $20, or $100 bill into small squares, and the solver must reassemble it. After solving the puzzle, kids can read fun facts about the president featured on the bill. There’s also Peter Pig’s Money Counter game, which teaches identifying coins and adding their values. Kids earn virtual money for playing, which they can choose to save or spend on accessories for Peter Pig in the virtual store.
  • Bankaroo is another helpful tool. It’s a virtual bank account for kids to track their allowance money. Children can use their Bankaroo accounts to keep track of their earnings and spending. They can also set savings goals, monitor progress toward them, and earn digital badges for achieving them. Bankaroo offers useful features for parents too. Besides using their Bankaroo accounts to pay for chores, they can choose to encourage saving by adding interest to their kids’ savings accounts or matching the money they set aside in savings.

Your Turn… What are some ways you’re trying to teach your children about money? How old were they when you first started teaching them? Share your thoughts in the comments.