Recently, Rich and I have had a few incidents with the girls where we are realizing that we need to be more pro-active with teaching them about finances.
Audrey and Georgia often seem to understand money pretty well. They have both saved their allowances for months for big purchases, and don't usually waste their money on candy or junky toys. Sydney (almost 4), is just getting to the age where she is starting to understand money. She especially likes to play "store" at her grandparents' house, where they will give her real money to use in her cash register, and then let her take it home when she's done!
There is a new series of books, written to help parents teach their children about financial responsibility. Jake Saves the Day teaches about the importance of saving, while Jake Earns a Treat teaches children the link between working at a job and earning money to buy something you want.
Sydney definitely doesn't understand either concept yet, so I was glad to read these books to her so we could begin to discuss money ideas. She seemed to enjoy them (I was asked to read each book twice in a row the first time she saw them). The main problem I had with them was that some of the rhymes seemed a bit forced. But I definitely think that teaching kids about finances and how to use money wisely is important. These books are a good way to open up the conversation with younger children in a way they can understand.
I was provided with a free copy of Jake Saves the Day and Jake Earns a Treat to facilitate my review. I was not otherwise compensated for my review. All opinions are my own or those of my children.