How to raise financially confident kids: practical lessons for every age

Money may not grow on trees, but financial habits take root early. A frequently cited Cambridge University study suggests that children’s money habits and patterns are largely formed by the age of 7. Additionally, a recent survey shows that 73% of Canadian high schoolers wish they understood more about personal finance, but don’t know where to start. That’s not a contradiction — it’s a sign that kids need ongoing support to build financial literacy.

Parents have a significant influence on their children’s long-term money skills. Kids learn by watching and imitating — picking up financial habits at home, both good and bad, long before they cash their first paycheque.

By weaving simple, age-appropriate conversations and activities into everyday life, parents can lay the groundwork for raising financially confident, capable adults. In fact, studies show that children who are given opportunities to manage money at a young age are more likely to be financially responsible as adults.

Read on to learn how to teach kids about money by age group — from preschoolers and kindergarteners counting coins to teenagers swiping their first credit card. Because when it comes to financial skills, starting early pays off — just like with saving and investing!

Here's how to introduce key money concepts at every stage of your child’s development — from tots to teens.

At this age, money might feel magical — it jingles, crinkles and somehow buys ice cream. While young children are unlikely to grasp abstract financial concepts, it’s prime time for building solid money habits for later in life.¹

Early lessons should be simple, hands-on and fun. Start with basics like learning about coins and bills, as well as the idea that some things are “needs” (like groceries) and others are “wants” (like ice cream). Keep conversations casual and interactive to connect money to everyday life.

• Focus and persistence
• Understanding trade-offs (saving vs. spending)
• Valuing time, money and belongings
• Basic math skills (counting, sorting, comparing)
• Beginning to grasp the idea of trading time for money

• Play “store” with real or pretend money.
• Practice counting and sorting coins.
• Use everyday moments — like deciding between two toys or saving coins in a piggy bank — to encourage patience, decision-making and goal setting.
• Show your child essential versus optional items while shopping.

At this age, kids continue to develop money habits, attitudes and values that can last a lifetime. This is a great time to build their financial literacy and confidence, encourage planning and saving, and help them make smart choices to achieve their goals (like saving for a new bike or video game).

Make money lessons fun and interactive — kids learn best when they’re part of the action.⁷ Play games while shopping (“spot the best deal!”), think out loud about your money decisions and read stories about saving and spending.⁸

Looking for the next step? Open a kids’ chequing account together. Studies show that children with their own bank accounts are more likely to develop strong money habits and grow into financially capable adults.

• Understanding basic money concepts (saving, banking, earning, interest)
• Planning ahead and sticking to goals
• Waiting to get something they want (delayed gratification)
• Saving regularly and making thoughtful spending choices
• Making money decisions that match their goals and values
• Building confidence to try new money tasks (like budgeting!)

• Open a new bank  account for your child.
• Set a savings goal and create a chart to track progress.
• Let your child budget for an imaginary party  or a real party (like their birthday!).
• Visit the bank to deposit savings and track the balance as it grows.¹³
• Match their savings — add 25 cents for every dollar they save.¹⁴
• Share your household budget and explore tools that help you track spending, like the Scotia Smart Money by Advice+.¹⁵

Between part-time jobs, first paycheques and peer pressure, the teen years are when money gets real. Your teen is (hopefully!) learning to earn, save and spend — and they’re watching you do it, too.¹⁶ Why is Mom at the office so late? Why does Dad skip movies on flights to work instead? Teens start noticing how parents trade time for income — and that’s a powerful lesson.¹⁷

It’s also prime time to go digital: open a chequing account, e-Transfer allowance and explore budgeting apps. Also, teach them to be discerning about online information. In an era of #sponsoredposts, it’s easy for teens to confuse hype with helpful advice. Influencers often blur the line between credible and paid content, and studies show influencers sway teens’ buying decisions more than family members. Help your teen spot red flags, question sources, find trustworthy information and avoid costly mistakes.

Another tough topic? Emotional spending. Advertising is designed to make us feel something — and drive spending. Add in the ease of online shopping, “FOMO” and flash sales, and it’s easy to overspend. Teaching teens to spot these emotional triggers helps them spend with purpose, not pressure.

And finally, start real conversations about debt, credit scores and borrowing money. A first credit card may be around the corner, and how your teen uses it could shape their financial future. Give them safe, hands-on experiences now, while the stakes are low and the life lessons are gelling.

• Managing money to reach personal goals
• Understanding concepts like saving, taxes, interest, borrowing, credit scores and bank statements 
• Planning ahead and delaying gratification
• Evaluating financial advice and spotting scams
• Using digital banking tools and tracking apps
• Spending and saving based on personal values and credible information
• Thinking critically about financial choices

• A good first step when it comes to learning about money is opening a chequing account. The Scotiabank Preferred Package for Students and Youth, for example, offers no monthly fees, unlimited debit and Interac e-Transfer† transactions¹⁹, and the chance to earn Scene+^TM points²⁰ — which could be a good first step at teaching your teen to manage money independently.
• Use a decision matrix that lists features for each of the options, to help your teen choose a phone plan (or another larger purchase) that fits your household budget.
• Learn how to look up your credit score online and explain what can impact a rating.
• Shop for a credit card together, comparing interest rates, fees and rewards.
• Use a credit card repayment calculator to explore how long it takes to pay off a $1,000 balance with minimum payments.
• Use our credit card rewards calculator to learn how to make the most of responsible credit card use.
• Add your teen as an authorized user or co-sign a low-limit credit card (but set rules and track usage together).
• Introduce budgeting methods, such as the 50/30/20 rule or zero-based budgeting.

Raising money-smart kids starts with small, everyday lessons — counting coins, saving for a toy, depositing their first paycheque. With age-appropriate (and fun!) activities, parents can help the next generation build real-world financial skills that grow with them.

The Scotiabank Preferred Package for Students and Youth makes it easier, with no monthly fees, smart savings features and digital tools designed for young account holders. Whether your child is just learning about coins or is ready for their first credit card, you’re their best financial role model. Start early, make it fun, and help your kids build a future they can bank on.