This article focuses on the financial education of children. Education is a key factor in achieving economic development and socio-economic equality. Financial education can provide children with some of the additional knowledge and skills required to this end. Second and third grade Israeli students (n = 121), enrolled in three differently situated schools (in terms of religiosity level and socio-economic status [SES]), filled in a multiple-choice questionnaire constructed especially for this study, designed as a pre-test before starting a course on financial education. The analysis included an ANOVA test and t-tests. Results revealed an overall low level of financial literacy amongst Israeli children. Religious students displayed higher financial literacy in comparison to secular students, and students of high SES showed a higher level of financial literacy compared with low SES students. Mistaken preconceptions were also revealed. The insights gained will contribute towards developing more effective financial education for children, thereby improving their chances of future success.