In today's digital world, equipping kids with financial literacy skills is more important than ever. Teaching kids about money helps them become self-confident, motivated and resilient. A lesson in money management can begin at anytime, however, with back to school shopping underway, it's a good time to teach a money management lesson at home. Consider these tips for kids of varying ages:

What is financial literacy?

Financial literacy involves understanding how money works and developing the skills to manage it effectively. Starting the conversation about spending, saving and investing at a young age can have a lasting impact. Early exposure to financial concepts helps children build a solid foundation for making informed financial decisions throughout their lives.

Lessons for Early Childhood (Ages 3 - 5)

Introduce basic concepts like recognizing coins and th eidea of saving with a piggy bank. Encourage saving for small treats to make the concept tangible and fun!

Lessons for Elementary Students (Ages 6 - 11)

Teach budgeting, differentiate needs from wants and introduce savings accounts. Show real-life examples, such as credit card interest, to illustrate financial responsibility.

Lessons for Middle School (Ages 12 - 14)

Help set specific savings goals and discuss the benefits of consistent saving. Encourage part-time jobs or allowances to adopt practical money management skills.

Lessons for High School (Ages 15 - 18)

Introduce advanced topics like investing, credit scores and budgeting for larger expenses such as cars or college. Emphasize long-term financial planning and decision making. Share how today's financial decisions, such as on-time bill payment, impact your financial life later.

These tips are for information only and are provided by Iowa State Bank in partnership with the Iowa Bankers Association. For additional questions, contact your personal banker.