How do I teach my 7 year old about money?
By Calm Money Kids · 5 min read
A lot of parents see a change around 7, when their child starts talking about things they want next month and not only today. You can teach a 7 year old about money by helping them set one savings goal with a name and a date, and by showing them that money left alone can grow. Seven is a good age for both, because your child can now plan ahead and wait for something that matters to them.
What can a 7 year old understand about money?
Many 7 year olds understand that money has value, that it is traded for things, and that people earn it. They can follow "if this, then that," as long as it is about real things they can see.
Fairness also matters a lot at this age. You may hear questions about what other kids get.
This matters because your child is ready for a real goal now. In Calm Money Kids, a 7 year old moves up to the Goal Builder stage, and the app's activities change to match.
What is new about teaching money at age 7 compared to age 6?
At 6, a savings goal took two to four weeks. At 7, a goal can take one to three months, and it gets a name and a date.
The suggested allowance goes up to $7 a week. The Spend jar gets $3, the Dream jar gets $2, and the Grow and Give jars each get $1.
Your child also starts making Spend choices on their own. You only step in if something is not safe.
When your child turns 8, you can read how to teach an 8 year old about money.
Why should your 7 year old start saving for a goal now?
A child who never saves for anything learns that wanting and getting happen on the same day. That gets harder to unlearn every year.
A goal that takes two months teaches patience in a way no talk can. Your child gets to feel proud of something they did on their own.
How do the four money jars work for a 7 year old?
On Family Money Day, your child splits $7 into four jars. At this age your child can check the totals with you each week.
The app keeps track of every jar, so the numbers are always ready when you sit down together.
The Grow jar gets $1, and it starts to grow
The Grow jar is still for after age 18. What is new at 7 is that you can add a little extra each month because your child left the money alone.
You might say, "Remember the seed we planted? Now a little sprout is popping up. Each month we add a bit extra because you left your Grow money alone, and banks do the same thing for grown-ups. It is called interest."
The Dream jar gets $2 for a goal with a name and a date
With $2 a week, your child can save about $8 to $26 in one to three months. Write the goal down with a date, like "skateboard by December 1."
A name and a date turn a wish into a plan your child can follow.
The Spend jar gets $3, and your child decides
The Spend jar holds the most money, and the choices are your child's to make. Some of those choices will not work out, and that is part of the plan.
If a cheap toy breaks and your child asks why you let them buy it, you might say, "Because it was your choice, and now you know something you did not know before."
The Give jar gets $1 for a cause your child cares about
At 7, your child can pick a cause and stick with it for a while.
If they ask why they have to give, you might say, "Giving is one of the four jobs your money has in our family. You get to pick who we help."
How do you help a 7 year old set a savings goal and stick to it?
Say your child wants a building set that costs $16. With $2 a week in the Dream jar, that takes eight weeks.
Count the eight weeks on a calendar together, and write the goal and the date at the top.
Around week four, your child may ask to take some Dream money out for candy.
You might say, "Let's talk about it first. If you take some out, your building set moves further away, so let's count how many more weeks it would take. Then you can decide."
The talk is the lesson, because your child sees what the candy really costs. In Calm Money Kids, you can see the Dream jar total any time, so you can count the weeks left together.
What are three money activities to try with your 7 year old this week?
All three of these ideas help your child see a goal and move toward it. You can do the first one today and add the others later.
- Write down your child's goal, its price and the date they hope to buy it, and work out together how many weeks it will take.
- Break the goal into small steps, and mark each step with a sticker when your child reaches it.
- Ask your child how it feels to wait for something and what helps them wait.
Common questions about teaching a 7 year old about money
How much allowance should a 7 year old get?
Calm Money Kids suggests $7 a week for a 7 year old, which is $1 for each year of age. That is $3 for Spend, $2 for Dream, and $1 each for Grow and Give.
What is a good savings goal for a 7 year old?
A good goal is one your child picks and can reach in one to three months. Outings count too, like a trip to the trampoline park.
Can my 7 year old take money out of the Dream jar early?
Yes, but only after talking it over with you. Count together how much longer the goal will take, and then let your child decide.
Help your 7 year old set their first real goal this week
A 7 year old is ready to want something and work toward it. One goal with a name and a date is all it takes to begin.
Calm Money Kids tracks the Dream jar week by week and gives you Goal Builder activities for every jar.