Teaching Your 5-Year-Old About Money: A Parent's Guide

Hi, I'm Samantha – Founder, monster wrangler, and most importantly, mum to an energetic 5-year-old boy. If you're reading this, you've probably heard the classic phrase from your little one: "Can we buy this? Can we buy that?" And when you say no, you might get that confused look that says, "But why not, Mum?"

Here's the thing: our kids don't yet understand that money doesn't grow on trees. And honestly, why would they? To them, we just tap a card, and things magically appear. That's why I created Monster Money Club – to make financial literacy fun, accessible, and age-appropriate for our little ones.

Why Start at Age 5?

Five is the perfect age to introduce money concepts. At this stage, children are developing their understanding of numbers, they're curious about the world around them, and they're starting to grasp cause and effect. Plus, habits formed early stick around for life.

As a parent with an accounting background, I knew the importance of financial literacy. But as a mum, I also knew that lecturing my son about budgets and savings accounts wasn't going to work. That's where our lovable monsters come in!

The Money-Doesn't-Grow-On-Trees Conversation

Let me share how I approached this with my own son, and how the Monster Money Club makes it easier for families everywhere.

Step 1: Connect Money to Work

I started by explaining that Mummy and Daddy go to work to earn money. Just like he does jobs at home (putting away toys, helping set the table), grown-ups do jobs to get money. This is where our monsters come in to make it relatable and fun!

In the Monster Money Club, each monster has a special personality that teaches a key financial concept. When your child meets these characters, they start to understand that money is earned through effort – it's not just something that appears.

Step 2: Introduce the Three Money Choices

At 5 years old, kids can grasp simple choices. I teach my son that when we have money, we can do three things with it:

• Save it – Keep it safe for something special later

• Spend it – Use it to buy things we need or want

• Share it – Help others who need it

The Monster Money Club brings these concepts to life through characters who work together, showing how budgeting, spending, and saving complement each other. When children see the monsters making these choices, it suddenly clicks!

Step 3: Make It Visual and Hands-On

Five-year-olds are visual and kinesthetic learners. That's why I use real coins and notes at home, and why our Monster Money Club books include interactive elements designed specifically for young learners.

Try this at home: Give your child three jars or containers labeled "Save," "Spend," and "Share." When they receive money (birthday gifts, pocket money for chores), help them divide it between the jars. This makes the abstract concept of money management tangible.

Real-World Scenarios That Work

The monsters in Monster Money Club use scenarios that 5-year-olds understand – allowances, sharing with friends, and saving for toys. Here are some practical ways to reinforce these lessons:

At the Shop

Next time you're at the store and your child asks for something, try this: "That toy costs $15. You have $5 in your spend jar at home. If you save your pocket money for three more weeks, you'll have enough to buy it yourself!"

This teaches delayed gratification and the value of saving – concepts our monsters demonstrate beautifully in their adventures.

The Allowance System

Consider giving your 5-year-old a small weekly allowance tied to age-appropriate chores. Even $2-3 per week gives them something to manage. With guidance (and a little help from our monster friends), they'll start making their own money decisions.

The "Needs vs. Wants" Game

Turn learning into play! As you go about your day, point out different items and ask, "Is this a need or a want?" Food is a need. That extra chocolate bar? That's a want. Our Monster Money Club activity books include fun exercises like this that make learning feel like playtime.

Common Challenges (And How to Overcome Them)

"But I Want It NOW!"

Patience is hard for 5-year-olds. When my son struggles with waiting, I create a visual savings chart. Every time he adds money to his save jar, we color in a section. Seeing his progress toward his goal makes waiting easier.

"Why Can't We Just Get More Money?"

This is where the "money doesn't grow on trees" lesson really matters. I explain that we have a certain amount of money to use, and we need to make smart choices about how to use it. The monsters in our stories face the same dilemma, helping kids understand that everyone has to make choices with their money.

The Monster Money Club Difference

Creating Monster Money Club came from my own journey as a parent. I wanted resources that were:

• Fun and engaging – Because 5-year-olds learn through play

• Age-appropriate – Concepts designed specifically for young minds

• Practical – Real scenarios kids encounter in daily life

• Character-driven – Lovable monsters that kids want to learn from

Our picture books, activity books, and workbooks are designed with visual, auditory, and kinesthetic learning styles in mind. After each book or activity, your child will have a basic understanding of the financial concept covered – whether it's saving, budgeting, or spending wisely.

Your Free Starting Point

Ready to start your family's money journey? I've created the Monster Money Club Starter Guide specifically for parents like you who want to set their children up for financial success.

This free guide includes:

• Age-appropriate conversation starters about money

• Introduction to our lovable monster characters

• Simple activities you can do at home today

• Tips for making financial literacy fun, not scary

Download your free Monster Money Club Starter Guide from our website and join our growing community of parents who are teaching their kids smart money habits – one monster at a time!

The Bottom Line

Teaching a 5-year-old about money doesn't have to be complicated or boring. With the right approach – and a little help from some friendly monsters – you can lay the foundation for a lifetime of financial confidence.

Remember, you're not just teaching your child about coins and notes. You're teaching them about choices, consequences, patience, and planning. These are life skills that will serve them forever.

Start small. Be consistent. Make it fun. And let the Monster Money Club monsters be your guides on this important journey.

Because when we teach our children that money doesn't grow on trees – but that they have the power to earn it, save it, spend it wisely, and share it generously – we're giving them something truly valuable: financial confidence for life.

Ready to get started? Subscribe to Monster Money Club and download your free Starter Guide today. Let's create smart money habits together – one monster at a time!

- Samantha, Founder of Monster Money Club