Teaching Kids About Money, Time and Talent

When a child points to something at the store and asks, "Can we get that?", how you respond matters more than you might think. According to K-State Research and Extension, the conversations adults have — or avoid — about money shape how children understand one of life's most important resources.

Many adults are uncomfortable talking about money with their kids. Sometimes it's to shield children from financial stress. Other times, "we can't afford that" is really shorthand for "that's not in our budget right now." But without clearer explanations, children may only hear one message: we must be poor. Open, consistent conversations about money go a long way toward raising financially confident kids.

Money Is a Symbol — And That Takes Time to Learn

Young children are still learning that words and numbers represent real things in the world. Just as a toddler learns that the word "cow" stands for the animal, they must also learn that a dollar bill represents value and purchasing power. This cognitive leap takes time, and adults can support it by making money talk a normal part of family life.

But money isn't the only resource worth discussing. Time and talent matter, too. Helping children recognize that their efforts — helping a neighbor, spending time with a grandparent, or contributing to chores — have real value builds a well-rounded understanding of what it means to contribute to a household and a community.

The Building Blocks: Earn, Spend, Share, Borrow, Save

K-State Extension experts recommend introducing children to five core financial concepts, each appropriate to a child's developmental stage.

• Earning can be introduced early. Young children understand that positive actions bring rewards. As they grow, they can earn money for tasks that go beyond normal household expectations — but adults should be thoughtful. Paying a child for routine chores like setting the table can send the message that contributing to family life is optional and transactional.
• Spending helps children practice decision-making. Even deciding when to use earned "fun time" teaches them about choices and trade-offs.
• Sharing is a developmental milestone, but it shouldn't be forced. Guiding children to make their own sharing decisions — and experience the natural consequences — builds social skills and empathy.
• Borrowing and lending carry longer-term lessons. Encourage children to think through what might happen if a borrowed item isn't returned, or if a loan can't be repaid. Then let them decide — and let the outcome teach them.
• Saving is best introduced gradually. A piggy bank works well for young children. As they grow, a savings account teaches them about interest and how banks work.

The Bottom Line

Children learn by watching and listening to the adults around them. When caregivers are intentional and open about money, time, and talent, children develop the tools they need for a lifetime of financial well-being. It's never too early to start the conversation.

Based on MF3465, "Through a Child's Eyes," Kansas State University Agricultural Experiment Station and Cooperative Extension Service, 2019.

by Joy Miller, Family and Consumer Wellness Agent, April 2026