Children start to understand money in early childhood, around ages 3 to 5. At this stage, they learn through play and imitation. Parents can introduce simple concepts like saving and spending. For example, they might use a piggy bank to save coins. They also start to grasp the idea of exchanging money for goods, like buying a toy with coins.

During middle childhood, ages 6 to 12, children start to understand the value of different amounts of money. They might receive pocket money or allowances, which helps them learn about saving for things they want. Schools might also introduce basic financial education, teaching them about money management and the importance of saving.

Adolescence, ages 13 to 18, is when teens often manage their own money for the first time. They might have part-time jobs, giving them real-world experience with earning and spending. This is when they learn about budgeting and financial planning. They start to understand long-term financial goals and responsibilities, like saving for college or a car.