Strategies and Activities for Teaching Money to K-2

Teaching young children about money management from an early age is a critical life skill that can set them up for lifelong success. In this article, we will explore effective strategies and engaging activities designed for our kindergarten to second grade students.  By adding these strategies into your curriculum, you can create a fun and interactive learning environment that will help students understand the value of money, make good money choices, and develop math skills that are super important! 

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The Importance of Teaching Money Concepts in Elementary

In today's society, financial literacy is a crucial skill that every student should learn. Teaching students while they are in elementary about money management can set them up for lifelong success. By introducing money concepts and vocabulary to students in kindergarten to second grade (K-2), you can help them develop essential math skills, understand the value of money, make informed money decisions, and help create responsible money habits.

At this stage in life, your students are like little sponges. They take in information and remember it clearly. When you include money education into your curriculum, you will find your students are eager and curious to learn more.  In addition to getting great engagement, teaching money early allows for a gradual progression of knowledge and skills. This means you can build on the knowledge they have and increase it more! 

What Fundamental Skills Should Students Know? 

Before diving into the strategies and activities, it's important to understand the developmental milestones for understanding money in K-2. In kindergarten, your students should be able to identify coins. They should also understand the basic concept of counting and exchanging coins for items or services. 

In first grade, students should be able to count coins up to $1 and understand the value of different combinations of coins. 

By second grade, students should be able to count money amounts up to $5 and understand the concept of giving change.

These  “milestones” may vary among individual students, and you should provide differentiated instruction to meet the needs of all learners. By keeping these developmental milestones in mind, you can tailor your strategies and activities to ensure they are age-appropriate and aligned with students' current abilities.

Strategies For Teaching Money in K-2 

To effectively introduce money concepts in the classroom, you can use a variety of strategies that promote engagement and active learning. One key strategy is to use hands-on activities and games that give your students a chance to physically interact with real money and real coins. This helps students develop a practical understanding of the value of coins and bills. For example, you can set up a pretend store where students can use real money to make purchases and practice counting and exchanging coins.

Another effective strategy is to incorporate technology into money lessons. There are numerous educational apps and online games available that can make learning about money interactive and enjoyable. These digital resources can provide opportunities for students to practice counting money, make virtual purchases, and solve money-related problems. Using technology not only enhances engagement but also helps students develop digital literacy skills which is important in today's digital age. 

Hands-On Strategies and Activities for Teaching Money 

Hands-on activities are a great way to engage your students while helping them understand money and any other concept you are teaching in your classroom. Here are a few strategies for teaching money that you can use in your money unit or your small group and math centers for kindergarten, first, and second grade: 

  1. Coin Sorting: Provide students with a variety of coins and ask them to sort them into different groups based on their values. This activity helps children recognize and differentiate between coins. To make this an easy center, you can make a simple table with different values on it and have students sort them into columns. You can use the table over and over again if you laminate the sheet! 
  2. Coin Rubbings: Give students paper and crayons, and ask them to place a coin “under the paper and rub the crayon over it. This activity not only reinforces coin recognition but also allows students to explore the textures and details of different coins while increasing their fine motor skills. This can easily be an activity that students do during e-learning as well. You can have students go on a “coin hunt” at home and do a coin rubbing. Then, have students label how much each coin is worth. 
  3. Money Matching: Create a set of cards with different amounts of money written on them and another set of cards with corresponding coin representations. Students can match the cards to practice counting money and recognizing different coin values. This is a great tool to use in centers or in small groups. Students can play the game while collaborating. 
  4. Play Store: Set up a pretend store in the classroom where students can use play money to make purchases. This activity allows students to practice counting and exchanging coins while having fun role-playing as customers and cashiers. You can make this more realistic by getting ads from local grocery stores for older students. Another way to do this is to collaborate with an older class. Let them be the purchasers and your younger students be the cashiers. Then, the older students can help the younger students as well. 

These hands-on activities provide students with experiences that help solidify their understanding of money and its value. They also encourage active participation and collaboration among students, fostering a positive and engaging learning environment.

Incorporating Technology in Money Lessons

In today's digital age, technology can be a powerful tool for enhancing money lessons and engaging young learners. Educational apps and online games can provide interactive experiences that make learning about money fun for students. Here are a few strategies for teaching money with technology: 

  1. Interactive Counting Apps: There are numerous counting apps available that allow students to practice counting money in a fun and interactive way. These apps often feature engaging visuals, sound effects, and interactive exercises that make learning engaging and effective.
  2. Virtual Store Simulations: Virtual store simulations allow students to experience the process of buying and selling goods using virtual money. These simulations provide a realistic context for students to practice making purchases, calculating totals, and giving change.
  3. Online Money Games: Online money games can be a great way to reinforce money concepts while providing an enjoyable learning experience. These games often involve challenges and puzzles that require students to apply their knowledge of money and make strategic decisions.

By incorporating technology into money lessons, you can increase the interests and familiarity of your students with digital resources to create engaging and interactive learning experiences. However, it's important to ensure that technology is used purposefully and in moderation, striking a balance between screen time and hands-on activities.

Teaching Money Through Real-Life Scenarios and Role-Play

One of the most effective ways to teach young children about money is through real-life scenarios and role-play. By creating a simulated environment, students can actively engage with money and use their knowledge in a practical way. .

To begin, you can set up a pretend store in the classroom, complete with play money, price tags, and various items for sale. Students can take turns being the shopkeeper and the customer, practicing counting money, making change, and understanding the concept of buying and selling. This activity not only helps develop math skills but also teaches children about the value of different coins and bills while they learn how to interact with people which helps build their character. 


Another engaging activity is to assign roles to students and have them act out different scenarios involving money. For example, one student can pretend to be a cashier at a grocery store, while others take on the roles of customers. The cashier can practice counting money, giving change, and providing receipts, while the customers learn about making purchases and budgeting their money. This type of role-play allows children to apply their knowledge in a realistic setting, making the learning experience more meaningful and enjoyable.

Additionally, you can incorporate money-related activities into other subjects, such as language arts or social studies. For instance, students can create a classroom economy, displayed on an anchor chart, where they earn and spend money for completing tasks or exhibiting good behavior. This not only reinforces money skills but also teaches children about responsibility, goal-setting, and the value of hard work. Plus, it can be a fun classroom management tool. 

By providing young learners with opportunities to work with money through real-life scenarios and role-play, you can ensure they understand how important money choices are and how to make money choices in an informed way. 

Adding Money Lessons to Math Lessons 

Integrating money lessons into the math time is an effective way to teach students about the value of money while reinforcing essential math skills. By incorporating money-related activities into daily math lessons, you can create a seamless learning experience that is both engaging and educational.

One strategy for teaching money while using your math curriculum is to use coins and bills as manipulatives. You can provide students with a variety of coins and bills, allowing them to physically handle and manipulate the money. Students can practice counting, sorting, and combining different denominations to develop their understanding of money and its value. This hands-on approach not only makes learning more concrete but also helps your students develop their fine motor skills.


Another effective strategy is to use worksheets, interactive games and online games that focus on money-related math skills. For example, you can use Squares You Brain for first and second grade. These are self-checking and great to incorporate into your math centers.

Students can practice counting money, making change, and solving word problems that involve money. By adding these activities into daily math lessons, you can reinforce important math concepts while teaching students about the practical applications of money.

Furthermore, you can use picture books and stories that incorporate money-related themes to engage students in the learning process. Reading stories about characters who save, spend, or donate money can help children understand the importance of financial decision-making and the consequences of their choices. After reading the story, you can lead discussions and activities that encourage critical thinking and reflection.

By integrating money lessons into the math curriculum, educators can provide students with a well-rounded learning experience that combines essential math skills with practical financial knowledge.

Assessing Students on Money Material 

Assessing and evaluating student understanding of money is crucial to ensure that the strategies and activities implemented in the classroom are effective. By regularly assessing student progress, educators can identify areas of improvement and tailor their teaching to meet individual needs.

One way to assess student understanding is through observation and informal assessments. You can observe students during hands-on activities, role-play exercises, and math lessons to gauge their comprehension of money concepts. You can also ask open-ended questions to encourage students to explain their thinking and reasoning. When you ask open-ended questions, always make sure you reach each student. This type of informal assessment provides valuable insights into students' understanding and allows you to address any misconceptions or gaps in knowledge.

Another assessment method is through quizzes or worksheets that specifically target money-related skills. You can create short quizzes or worksheets that assess students' ability to count money, make change, and solve word problems. These assessments can be used as a formative tool to monitor student progress and identify areas that require further instruction.

Additionally, you can incorporate project-based assessments that allow students to demonstrate their understanding of money in a creative and practical way. For example, students can create a budget for a pretend vacation or design a coin or bill with unique features. They could even plan the grocery budget for home. These types of assessments not only assess students' knowledge but also encourage critical thinking, problem-solving, and creativity.

The Importance of Ongoing Money Education in Elementary

Teaching kindergarten through second graders about money from an early age is crucial for their future financial well-being. By incorporating effective strategies and engaging activities into the curriculum, you can help students develop a practical understanding of money, make informed financial decisions, and develop essential math skills.

Developing these math skills is simple with strategies for teaching money to elementary students. You can easily use real-life scenarios and role-play, so students can actively engage with money and apply their knowledge in a meaningful context. By integrating money lessons into the math time, you can provide a seamless learning experience that reinforces important math skills while teaching students about the value of money. Finally, assessing and evaluating student understanding of money is an important piece because it ensures that the strategies for teaching money are working and meeting the needs of all your students. 


By prioritizing ongoing money education in early childhood, educators can cultivate a strong foundation of financial literacy and numeracy skills in their students. With the right strategies and activities, K-2 educational rock stars like you can empower students to become financially literate individuals who are ready to make informed money decisions throughout their lives.

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