Teaching kids financial literacy and understanding money: tips and games on the topic

You may think your child is still too young to pay attention to money. Maybe you do not touch on this topic, and they do not show interest themselves. But in reality, children encounter this concept surprisingly early and often. They see parents making purchases, hear conversations about expenses and savings, and quickly realize that those shiny coins and rustling bills have some power. However, the true value, function and, most importantly, proper money management remain a mystery to them.

The sooner a child understands the basics of finance, the easier and calmer it will be for you. Not only for their future – although literacy in this matter directly affects comfort and safety in adult life – but also for you today, when you can explain that not every “want” can be bought in the store and that some things require saving.

The solution lies in play! Money games for kids are not just a way to teach a child to count. They are an exciting, practical path to mastering the basics of financial literacy, where every coin becomes a lesson. Such games help understand the concepts of budgeting, saving, spending, credit and even making complex financial decisions in a safe and controlled environment.

Money Games as a way to master financial literacy: how can they help?

The game format for learning about money has many advantages that go far beyond simple arithmetic:

1. Conceptual understanding. Children begin to understand what money is, its functions as a medium of exchange, savings and a measure of value. They learn to distinguish coins and bills, understand their denominations and real purchasing power, which lays the foundation for financial literacy for kids.
2. Practical math skills. Money games are an ideal way to practice addition, subtraction, multiplication (for example, when buying several identical items) and division, as well as making change. Children work not with abstract symbols but with real and understandable things.
3. Decision-making. When a child has a limited amount of money, they learn to make choices: buy one expensive item or several cheap ones? Spend now or save?
4. Responsibility and planning. Managing “their own” money (even if it is play money) teaches the child to be responsible for their decisions. Planning purchases or saving for something desired develops budgeting for kids skills.
5. Patience and delayed gratification. One of the most challenging but important concepts for children. Games that require saving money for a bigger goal teach patience and the value of savings, overcoming instant desires.

Early acquaintance with financial concepts through play prepares a child for real-life situations when they will manage their finances independently.

Screen-Free Money Games – play, solve, inspire

The first thing you should do if you want to build a good foundation of understanding and awareness is to let the child touch and see money. It is not necessary to give real money – play money works just fine. Young children understand best through practical and clear examples rather than thousands of explanations and abstract terms. This is an excellent way for unplugged financial education.

For the youngest (3–4 years old) – first steps into the world of money

At this age, the goal is to introduce the child to what money looks like, its names and the idea of exchange. For parents, it is important to explain the concept itself, leaving more complex tasks, understanding pocket money and savings for later. Here are some ideas.

Play store

Create an improvised store with toys, fruits or other items. Set simple “prices” (for example, 1 coin per toy). Let the child be the buyer or the seller, exchanging money for goods. This is a basic money counting game that should be in every family’s toolkit. There are ready-made sets (with a cash register and toy goods), but you can create a money recognition game from things you have at home.

Coin sorting

Lay out real coins of different denominations. Ask the child to sort them by size, color and then by denomination, saying their names aloud.

Bank

Start a piggy bank with your child. Periodically count the saved coins together, celebrating their growth. Explain that this is their “bank” where money “grows”. For older kids, you can even make a bank with interest: the longer you wait, the more interest you get.

For preschoolers and younger schoolchildren (5–6 years old) – counting and basic operations

At this age, children are ready for more complex arithmetic operations and understanding value. This is no longer just money counting practice for kids but actual math.

Cash register

A more advanced version of the “Store”. Use a toy cash register (or simply a notepad for receipts). Let the child buy several items, sum up their cost and give change (using real coins and bills). This is an excellent making change game that does not get boring quickly.

Auction

Gather some old toys or unwanted but interesting items. Hold a family auction where everyone buys things for money (you can use tokens or a limited amount of real coins). This teaches understanding of price, value and bargaining skills.

Board games about money

Classic games such as a children’s version of “Monopoly”, “Life” or specialized board games designed to teach financial literacy. They introduce concepts of property, rent, salary and debts.

Guess the amount

Put several coins in an opaque bag or in your hand. Ask the child to shake the bag/hand and guess the total amount. Then count together. This develops auditory perception and quantity estimation.

Pocket money – practicing financial independence

Pocket money is not just an opportunity to buy sweets; it is a powerful tool for practical financial literacy training. Children start recognizing coins and bills as things you exchange for something as early as age 3. By age 5–6, they understand that money is earned, it is limited (runs out quickly) and can be counted (adding and subtracting simple amounts). Children begin to compare prices and understand that some things cost more and some cost less.

When should you start giving pocket money?

Psychologists and educators agree that the optimal age to start giving pocket money is 5–6 years old. At this age, a child usually counts to ten (or more), understands simple rules, can make conscious choices and is ready for the first lessons in financial responsibility. The main thing is that the decision to start giving pocket money should depend not so much on a specific age but on the child’s readiness to understand and manage it.

Give pocket money on the same day each week or month. This teaches the child planning and understanding that income comes at a certain interval. Also, once you have given an amount, accept that the child now decides how to spend it, even if it seems inappropriate or unreasonable to you (except for truly dangerous or harmful things). Learning from their own mistakes is the most valuable experience.

Another tip: money is not a reward or praise. It is only a tool for learning, not a means of manipulation. Do not take away pocket money as punishment for bad behavior and do not give it as a reward for good grades or obedience.

When you start planning the budget together, you must set clear rules for its use. Discuss with the child what exactly pocket money should cover (sweets, small toys, part of entertainment) and what cannot be bought with it (for example, dangerous things, prohibited items). You can even encourage attempts at planning or even savings goals.

Digital Money Games: learning financial literacy online

Online games can be an excellent tool for teaching financial literacy, offering interactive scenarios and engaging tasks. Among the options, Keiki can be highlighted. The app does not have specific money games but offers plenty of tasks in math and logic, which form the foundation for understanding the concept of money. Here are some examples:

1. Counting Games. Keiki offers many fun games where children count items and match quantities, which is the basis for understanding denominations and adding up money. For the youngest, number games are suitable.
2. Logical puzzles with quantities. Tasks that require understanding groups, distribution and matching train logic and abstract thinking.
3. Matching tasks. Games where children match numbers, shapes or pictures help in recognizing different coins and bills.
4. Decision-making games. Although not always directly related to money, many games in Keiki require the child to make choices, which trains decision-making ability – a key skill in financial planning.

It is important that Keiki provides a completely safe learning environment without ads and unwanted content, allowing children to focus on learning.

Other popular platforms

There are many other excellent money learning apps and online financial literacy games that specialize in teaching financial literacy:

• Peter Pig's Money Counter – an interactive game for recognizing coins and their value
• Kids' Money – apps that help children track their income and expenses
• Mint for Teens/Kids – versions of popular finance apps adapted for teens and kids, helping with budgeting
• classic economic simulators – more complex games where children manage a virtual business or city, learning the basics of economics

Tips for parents: how to integrate Money Games into everyday life

To make learning about money through games as effective and enjoyable as possible, parents can follow these simple tips:

1. Use real money. Where possible, play with real coins and bills. Their weight, texture and images help children learn better. If you are worried they are dirty – bills can be washed in a washing machine; nothing will happen to them, just dry them afterward.
2. Ask questions and discuss. In the store, ask: “Do we have enough money for this?” or “Which one is cheaper?”. Discuss your financial decisions in a simplified form.
3. Allow mistakes, as they are the best teacher. Oh, how many tears and frustrations can come when buying an unnecessary trinket delays a more “serious” purchase. But such kids money lessons must be experienced and understood.
4. Set up a pocket money system. As described above, this is a powerful tool for teaching financial responsibility.
5. Encourage savings. Help your child set a savings goal (for example, for a new toy) and track the progress. You can offer a small interest for saved amounts.

And most importantly – avoid pressure and coercion. Turn learning about money into an engaging game, not a boring lesson.