Why Teach This Early?
Financial habits formed in childhood persist into adulthood. Warren Buffett bought his first stock at age 11. In the US, children with savings accounts are more likely to attend college. Early financial literacy prevents debt problems later.
Progressive Sub-Goals
Introduction
Opens a savings account and learns the difference between checking and savings
💡 Tip: Take them to the bank - make it a real experience.
Developing
Sets up automatic transfers from allowance to savings, tracks balance growth
💡 Tip: Show them compound interest with a spreadsheet - watch money grow.
Mastery
Maintains a savings rate of 20%+ and understands interest earned
💡 Tip: Match their savings like a 401k - incentivize the habit.
Teaching Tips
- 1Pay yourself first - savings before spending
- 2Use apps like Greenlight to make it tangible
- 3Set savings goals for things they want
- 4Celebrate milestones - first $100, first $500
Related Skills to Explore
#11 Object Permanence
Cognitive & Strategic • Age 0 (0-12 months)
Tracks objects with eyes as they move
#12 Sensory Exploration
Cognitive & Strategic • Age 0 (0-12 months)
Explores objects with hands and mouth
#13 Cause & Effect Understanding
Cognitive & Strategic • Age 0 (0-12 months)
Accidentally discovers actions have effects
#151 Full Meal Preparation
Kitchen & Food • Ages 6-8
Plans and cooks a simple, complete meal
#152 Baking from Scratch
Kitchen & Food • Ages 6-8
Bakes bread or cake from scratch
#153 Advanced Home Maintenance
Practical Life • Ages 6-8
Safely uses a power drill