Age & Development of Money Concepts

Ages ChildrenGrasp Basic MoneyConcepts

Toddler: 1-3 YearsToddlers watch money being used to buy things.They begin to understand some basic concepts.

Ownership – Begin to understand that they arethe owner of objects - “Mine!”

Sharing/Giving – Sharing is a part of life.Especially if they have siblings!

Money Recognition – Begin to recognize that money (coins or dollars) are used to buy things.

Pre-School: 3-5 YearsChildren begin to sense the power of money at this age.

Purchasing Power – Begin to understand the power of currency. Quarter buys a gumballbut not a toy.

Giving – Pre-schoolers begin to understandgiving. “Look what I drew for you mommy!”

Choice – Children begin to understand they aremaking choices. Such as what color crayon to use in the coloring book.

Elementary: 5-12 YearsReally begin to understand the basics of money.

Value – Begin to understand the value of things.Dollar is worth more than nickel.

Opportunity Cost – They understand they haveto sometimes give up something. Forgo the Gummy Bears for Sour Patch Kids at the movies.

Future - Begin to develop an awareness of the relationship between today's decisions & tomorrow's results