The importance of financial literacy in elementary education

Teaching financial literacy early builds smart habits. Twinkl’s resources help students learn saving, budgeting, and confident money skills

In today’s rapidly changing economy—with digital transactions, varying cost-of-living pressures, and financial decisions becoming more complex—it’s increasingly clear that starting financial literacy education early gives students a meaningful head start. Here at Twinkl Canada, we believe that embedding foundational money-smarts in Grades 1-6 supports lifelong skills and empowers all learners.

Why it matters

• Building positive habits early: When young children grasp basic concepts like saving a little rather than spending everything immediately, they form habits that can serve them into adolescence and adulthood.
• Reducing future anxiety: Even though elementary students aren’t yet making major investments or credit decisions, giving them basic vocabulary (currency, savings, budget) boosts confidence and reduces the “mystery” factor of money.
• Linking with curriculum: Financial literacy naturally connects to mathematics (money, number, calculation), to social studies (consumer choices, economy), and to character/citizenship (responsibility, decision-making).
• Preparing for the real world: With online purchases, subscriptions, and changing payment methods, children will sooner or later face financial decisions. Introducing thoughtful money education helps demystify those choices.
• Promoting equity: Not all students receive the same financial conversations at home. School-based financial literacy ensures all learners get access to this knowledge, helping level the playing field.

Five ways to teach saving (and have fun doing it)

Here are five practical, age-appropriate strategies for teaching the concept of saving in elementary classrooms (especially in Canadian contexts):

1. “Class savings jar” or “tirelire”
Have a clear, visible jar or container in the classroom labelled something like “Our Class Savings” (or in French: “Cagnotte de classe”). Whenever students do something responsible—help another student, tidy up materials, complete extra work—they earn a “coin” (could be paper tokens) to drop into the jar. Over time you build up enough “coins” to choose a class treat: a new math game, a special book, or an extra outdoor break. The class sees the benefit of saving toward a goal rather than spending impulsively.

2. Savings challenge toward an objective
Pick a realistic class goal: e.g., “We will save for a special drawing kit” or “We will save to host a reading afternoon with snacks”. Estimate a cost in “units” (for example 100 tokens). Ask students: “If we save 5 tokens per week, how many weeks until we hit 100?” Use a progress chart on the wall or digital tool. Celebrate once the target is reached and reflect: “Was the reward worth the wait? What else might we choose next?”

3. Purchase vs. Save scenarios
Offer students real-life style story prompts:

“Liam has $10. He sees a toy for $8 that he could buy now, or he could wait and save for a video game that costs $20 next month.”
Have learners discuss: What happens if he buys the toy now? What would happen with saving more first? What trade-offs are there? This discussion helps them internalize that saving means delaying gratification for a later, possibly bigger benefit.

4. Saving for the future & “unexpected costs”
Use simple scenarios: “What if your bike tire gets flat and you need $20 to fix it. If you save $2 each week, how many weeks until you have $20? What if you spend it all instead of saving?” This helps children understand that savings can be used for planned goals and for ‘rainy day’ needs. You might also tie into Canadian context: coins and bills, recognizing Canadian dollar, savings bank accounts (mentioned briefly).

5. Visual savings trackers & goal-setting
Create individual or class savings trackers: worksheets or charts where students set a goal (say, saving $50 for a book) and weekly tick off their savings progress. Let them colour in their progress bars. Using visuals helps sustain engagement and makes abstract savings more concrete. You might offer French and English versions for bilingual or French-immersion settings.

Featured Twinkl Canada resources

Here are three high-quality resources from Twinkl Canada that support financial literacy instruction, including saving concepts. Each one is easily integrated into your classroom planning.

1. Grade 1‑3 Financial Literacy Resource Pack (English) (Grades 1-3) — This pack introduces young learners to Canadian money: identifying coins and bills, simple counting, engaging games and worksheets. Designed for early learners with colourful, hands-on activities.
2. Grade 4‑6 Financial Literacy Resource Pack (English) (Grades 4-6) — Aimed at intermediate learners, this pack explores broader financial themes: budgeting, Canadian tax and sales tax context, coins and bills in Canada. Built to fit the Ontario curriculum for the F1 Money & Finances strand.
3. French-language versions — There are French-immersion or Core French versions of both the younger and older grade-level packs:
   • Grade 1‑3 Financial Literacy Resource Pack (French) — same foundational content, translated into French.
   • Grade 4‑6 Financial Literacy Resource Pack (French) — the intermediate French version for Grades 4-6.
     These versions support bilingual or French-language classrooms and help meet dual-language needs.

Final thoughts

Embedding financial literacy at the elementary level is not just an “extra” topic—it supports students’ mathematical thinking, decision-making skills, and long-term confidence with money. By using resources like the ones listed above and applying practical strategies to teach saving, educators can empower Canadian learners to think about managing money—not just spending it.