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Toddlers to Teens: Raising Financially Responsible Kids


Ages 9 to 12

At this age, kids become much better at applying learned skills. They can use math in real-life situations and understand how much goods and services cost. Pre-teens also begin abstract thinking, so they can understand financial topics that aren’t so black and white, like interest, loans, and credit.

At this age, parents should talk to their children about taxes, inflation, interest, and credit. Taking your child to a bank is a great way to teach some of these lessons. Help them open a savings account at the bank, review the ledger, and explain how they will earn interest on their money.

Kids at this age can also understand how debit and credit cards work. Show them the various cards you carry in your wallet and explain what the numbers, expiration date, and CVV code mean. Explain how debit cards deduct money directly from your account and how credit cards allow you to buy things now and pay it back at the end of the month.

Understand How Credit Cards Are Processed

It’s important that kids understand how credit card payments are processed. Use the below chart to explain what happens after you swipe your card.


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