How to teach kids about money using money book recommendations
Not sure how to teach kids about money? You might especially be wondering this if your child is a Money Rookie, meaning they hold as close to a clean money-education slate as is possible.
PSST: Not sure if your child is a Money Rookie, Money Apprentice, Money Star, or Money Idealist? Have them take the Money Prodigy Financial Assessment. You’ll get results + a money roadmap for where to start teaching your child about money based on where they’re at right now.
While you may be downright cringing at just how much money education your child needs − let alone where to even start − I’m here to tell you that the glass is half-full on this one, Mama Bear.
Think about how cool it is that there are no pesky money hang-ups holding them back, no habitual money behaviors to break, and hardly any misinformation you need to correct…just a clean slate where you can write the foundations for a brilliant money future.
Books are an excellent way to introduce a subject to a child while giving them some context and perhaps a few laughs.
Not only that, but they’re also a great opener for a money conversation.
So I’ve curated a list of money books that align with where your Money Rookie is right now.
I’m a firm believer that Money Prodigy categories are ageless − meaning they don’t line up with specific ages (so not all Money Rookies are preschoolers, and not all Money Stars are in their teens). So this list includes books in the preschool, pre-tween, and tween age range.
Preschool Money Rookies: Your Book List
Money Book #1: Sheep in a Shop, Nancy Shaw
Ages: 2-3 years old
Stores are a great place to help with how to teach kids about money. And this is the perfect book to show your very young kiddo what the purpose of a store is for: to go with money with something specific in mind that you want to buy. A group of sheep are on the mission to purchase a birthday gift. Unfortunately, they don’t have enough in their piggy bank for what they want to buy. So they learn to barter for it!
The Money Lesson(s): Sheep can’t count. Haha − just kidding. The real money lesson here is that things in stores are not free. Also, saving up to buy something is best…or else you might have to barter something like your own fur!
Life Lesson(s): It’s nice to both have fun while shopping, as well as to put some thought and energy into someone’s birthday.
Bonus Money Activity: For the next birthday-buying occasion in your household, walk your child through the process of buying a gift for someone. It doesn’t have to be from their money, or it could be − the point to this exercise is for them to be part of the money transaction. Set a budget for what they can spend on the gift, then brainstorm several ideas with them before heading to the store. Once you get to the store, walk them through the process. Let them choose from the shelf something close to one of the brainstormed ideas, as well as price compare if there are similar items. Ask them if the item is under the agreed-upon budget. If not, look around for another item. Have them put the item up on the counter at the cashier, and if you’re ready for it, have them hand over the money. Walk them through accepting the change, getting a receipt, and picking up the bag.
Money Book #2: Bunny Money, Rosemary Wells
Bunnies Ruby and Max want to buy the perfect birthday gift for their grandmother: a beautiful music box with skating ballerinas. They’ve saved up their own money to do so, and head to the store for this one purpose. However, things start happening, and temptations arise that cost them some of their money. Also, they didn’t research the cost of what they wanted ahead of time, so they didn’t have enough money to buy it to begin with.
They end up making a pretty bad spending decision − purchasing glow-in-the-dark vampire fangs that cost them their bus ride fare home. In the end they spend their last $0.25 calling their grandmother to come and pick them up.
The Money Lesson(s): Researching what you want to buy before you head to the store is a good idea so that you can make sure you have enough money. There are almost always less expensive alternative options for when you can’t afford what you originally wanted. You need to prioritize your spending for needs first (bus far home), then wants. Otherwise you might get stuck somewhere!
Life Lesson(s): Your family will be there for you, just as you should be there for your family. And sometimes you’ll make mistakes! It happens. Don’t be afraid to ask for help when you do.
Bonus Money Activity: Have your child go through each item the bunnies spent their money on, and tell you whether it was a want or a need. Let them defend their answers before telling them your answer.
Pre-Tween Money Rookies: Your Book List
Money Book #1: Pigs Will Be Pigs, Amy Axelrod
Ages: 5-8 years
The Pigs will be Pigs series, including this book, has been designed around the National Council of teachers of Mathematics’ Thirteen Standards.
But that’s not the fun part about this book (nor did that sound fun, right?).
This pig family has eaten through all their groceries from the morning (yes, pigs will be pigs!), and they’re hungry for a snack. The problem? There’s only a dollar between the lot of them. So they go about hunting for money in all kinds of peculiar places around their home. What I like is they don’t give the dollar denominations, but just the kinds of coins found, so that your child can do the math and add things up for themselves.
They are presented with a menu with prices, and so your child gets a chance at the end to figure out what else they could have bought from that menu. A very interactive book (probably not best for bedtime, as you’ll want them to break out a pencil and piece of paper to work on a few things).
The Money Lesson(s): Use the resources you’ve got at your hands (such as finding change in your own home versus going to the bank to get money out). Also, your child will get a bit more comfy with adding up different coins and dollar denominations, then trying to figure out what they can buy from it.
Life Lesson(s): Working together as a family means you’ll get to the goal that you want quicker. Plus it’s kinda fun!
Bonus Money Activity: At your family’s next restaurant visit, have your child choose something based on price. Give them a budget to work with, then ask them how many different combinations they can come up with from the menu and still stay under that budget.
Money Book #2: Follow the Money, Loreen Leedy
George is a newly minted quarter that gets used in a variety of ways. This book will give your child a great overview of money circulation + different ways that money can be used (like in a vending machine or as a donation).
The Money Lesson(s): There are a few calculations your kiddo is asked to make, such as how much change a customer should receive. This is also a great lesson in different ways money is used, and how far it can “travel”. It will answer the question of where money comes from, and what happens to it once it leaves their hands.
Bonus Money Activity: Have your child follow up reading this by going on a Virtual Money Field Trip to The U.S. Mint. This will show them where George the quarter came from!
Tween Money Rookies: Your Book List
Money Book #1: The Toothpaste Millionaire, Jean Merrill
Originally published in 1972, this book takes place in an era when many authors, including this one, talked about things like race/age/sex discrimination. So just a heads up!
What I liked about this book for your Money Rookie is that it takes the idea of earning money through manufacturing and makes it a very tangible subject. In fact, this line from the book pretty much sums up why I’m recommending it: “As I mentioned before, math isn’t my favorite subject. But I think everybody should take a course in toothpaste.”
A child, appalled by how expensive toothpaste costs at the store, knows he can make his own for a very, very small fraction of the cost. So he does. And with the help of his friends and his math teacher, works his way up to opening several toothpaste manufacturing facilities. Apparently the US is hungry for $0.15 tubes of toothpaste!
The Money Lesson(s): One lesson is an overall introduction into the manufacturing business (as in how a product is made, some of the costs of production that go into the overall price, price wars with other brands, etc.). So it’s taking lessons your child may have learned running a lemonade stand as a pre-tween and using some real-world examples to teach them the lessons now.
Life Lesson(s): The main character, Rufus, gets a lot of help and ideas from friends, families, and his teacher. I think this is an extremely important lesson, as we’ll all get where we’re going a lot faster (and help others get where they’re going a lot faster) when we let others help us.