As a parent, I know firsthand how challenging it can be to teach our kids about money. We all want to set them up for financial success, but making those lessons engaging isn’t always easy. The good news? It doesn’t have to be boring! Here are three simple yet powerful tips to help you raise money-smart kids in a way that’s fun and effective.
In today’s digital age, money has become largely invisible. We tap our phones, swipe cards, and click buttons to make purchases. For kids growing up in this world, money can feel abstract—like it has no real limits. To counter this, it’s important to make money tangible.
Here’s how:
• Create a personalized piggy bank - Use a clear jar and let your kids decorate it with stickers, paint, or glitter. When they take ownership of their piggy bank, they'll be more motivated to fill it up.
• Use physical cash - When giving an allowance or paying for chores, use bills and coins. Have them count out the money and physically place it in their piggy bank.
• Teach spending and saving through experiences - When they want to buy something, have them count out their money and hand it to the cashier. This reinforces the idea that money is a finite resource.
• Open a savings account - For older kids, take them to the bank to open an account. Walk them through filling out deposit slips and reviewing monthly statements. Seeing their balance grow will make saving feel real.
Even though we live in a cashless world, starting with tangible money acts like training wheels for financial literacy. Once they grasp the basics, you can introduce digital banking and budgeting apps as they get older.
Money isn’t just about spending—it’s about making choices. By involving kids in age-appropriate financial decisions, you can teach them about prioritization and trade-offs.
Ways to put this into practice:
• Grocery store budgeting - Give your child a small budget for their snacks or treats. Let them choose what to buy, but once the money runs out, that's it. This teaches prioritization and smart spending.
• Charitable giving - As a family, decide on a charity or cause to support. Have your child contribute a portion of their allowance and participate in making the donation. This shows them that money can be used to make a positive difference.
• Vacation planning - Give kids a say in certain budget-friendly activities. Present options along with their costs and let them help decide. For example, "We can either go to the amusement park for X dollars or go to the beach and use that money for a nice dinner out". This introduces the concept of opportunity costs.
The goal is to make kids active participants in financial decisions, not just passive recipients of money.
As millennials, we’ve faced unique financial challenges—from student loans and the Great Recession to COVID-19 and today’s crazy housing market. These experiences hold valuable lessons for our kids.
Here’s how to share your journey:
• Talk about saving for big goals - Whether it was your first car, a special vacation, or a home down payment, share how you set the goal, the sacrifices you made, and how it felt to achieve it. This teaches the power of delayed gratification and goal setting.
• Be honest about mistakes - You don't have to share every detail, but admitting financial missteps in an age-appropriate way can help your kids learn for your experiences.
By normalizing conversations about money, you create a safe space for kids to ask questions and develop healthy financial habits.
Teaching kids about money doesn’t have to be dull or overwhelming. By making money tangible, involving them in financial decisions, and sharing your own experiences, you can raise financially savvy kids who feel confident managing money.
And remember—financial education is a journey, not a one-time lesson. You don’t have to have everything figured out to start the conversation. Learning together can be one of the most rewarding parts of the process.
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