Teaching Kids About Money: Financial Lessons from Children's Books

I thought my partner and I had been doing a great job educating our children about money until the day my third grader, Isabelle, pointed out an under-construction home and told me I should buy it—and just put it on my credit card. I had to explain that this is NOT how money works! Children are sponges and learn their money smarts (or lack thereof) from their parents. My partner and I were both raised to spend and save wisely and try to share those lessons with our kids through our actions—and through books. Isabelle is quite the little reader, so we chose to introduce her to literature that discusses money in a way that is fun and easy. My hope with these books is that she learns financial lessons, but I also looked at these selections through the lens of a finance professional who assists families at Bright Horizons College Coach. Isabelle was happy to help Mommy with this work project; here are the books we read and our honest reactions: “Just Shopping with Mom” by Mercer Mayer   As a parent, I will admit I didn't love this book. The plot: Children keep asking for all the things, Mom says NO, yet after all her errands are done, she rewards them with one of the things after all. Perhaps I was annoyed by this story because, "I want this, I want that…"  is what I hear constantly when I take my daughters to any store. Isabelle's take: "The moral was good things come to those with patience and those who behave." Although, she also pointed out that the daughter who caused mischief also got a treat, and she wasn't sure that was "right."  I felt relief that she could see how the behavior of the children was not appropriate and would not have been ok with this momma!  “One Cent, Two Cents, Old Cent, New Cent: All About Money” by Bonnie Worth   This is a great book about the history of money but doesn’t incorporate any ideas about money management. Instead, it focuses on the origin of currency and basic info about banks, savings, borrowing, and interest. Isabelle's take: "Now I know who is on the $10,000 bill!" “Those Shoes” by Maribeth Boelts   I was the kid in this book in a lot of ways, so it hit me in all the feels. It is “wants versus needs” done right, with important lessons on savings. Of all the books, I felt it gave the best representation of a parental figure being transparent about their money situation. This also had some moral lessons about generosity.  Isabelle didn’t get this one immediately. “What does a book about shoes have to do with money?” This provided a lovely opportunity for a conversation about a family's financial circumstances, friendship, and giving. Once she sat with it, she was touched by the kindness and felt bad for the character who couldn't afford shoes. “Lily Learns About Wants and Needs” by Lisa Bullard   Isabelle and I both adored this book! It defines wants and needs and shows how kids try to manipulate the line between these two categories. It also points out that parents aren't always great at identifying a want versus a need either; Isabelle got a kick out of calling out her dad on this front. We often chat about how parents are not given a rule book and how we are learning right along with our kids, so this book validated that conversation! “A Boy, A Budget and a Dream” by Jasmine Paul This book (which I read independently, so Isabelle hasn’t issued a verdict) outlines differences between allowances and bonuses for doing chores. In a kid-friendly way, it covers budget creation, goal setting, and even creative ways to make money, like selling items a child is no longer using. This makes it visual, real, and practical for kids.  At the end of my exercise with Isabelle, I realized the ultimate lesson was actually for me: I needed to focus not just on the lesson I felt she needed to learn. Isabelle took away some moral lessons from some books, and money lessons from others, and that is just fine; kids will take what they need take from the book in the moment. As parents, we can guide them in a new understanding, but we can never assume they will have your mindset. Sometimes they might just surprise you!