How to teach your kids about money

For as long as there have been kids, parenting experts have been providing tips and tricks on everything from first steps to how to get fussy eaters to eat their veggies. But for all the advice out there, there’s not a ton that speaks to how to teach your kids about money.

It’s a complex topic with a lot of moving parts—but with the right resources, you can teach your little ones to be savvy savers in no time.

Set them up with an account

Depending on your child’s age, it might be a good time to open an account at a financial institution. This is a big milestone in their financial future, but it can quickly get confusing when you can barely see over the counter. Creating an account will be their first step toward gaining financial independence. Make sure to bring them along for the process so they can better understand exactly where their money will be going. Some places even offer special accounts to help teach kiddos about the world of banking and finances.

Try co-shopping

Grocery shopping may seem like an everyday task, but it has the potential to provide a great financial lesson. Teach your kids how to set a budget, make a list, and hunt for deals. Groceries are a simple and tangible way to teach these basic lessons. You could even give them their own list and budget to put the lesson into practice. We will give you an easy start to your co-shopping journey with our grocery budget worksheet for kids.

Set savings goals

Kids love instant gratification. Setting tangible and realistic savings goals is a great way to demonstrate how far their money can go (and curb impulse-buying habits). Encourage them to set goals using our savings worksheet for kids for something they really want—a bike, a game console, a pair of sneakers—and remind them of the savings goal whenever they want to spend on less important things.

Spend, save, give

Budgeting is tough for most adults, so teaching your kids to budget can be hard, but not impossible. Sit down with them and write out all the ways they make money (birthdays, allowance, chores) alongside the things they spend their money on. With some simple subtraction, your kids can easily see where their money is going. Try using our Budget Worksheet to get started.

It’s also never too early to instill the concept of giving back. Encourage your kids to donate a small portion of their earnings to something they care about. Making charity a part of their financial plan will help reinforce this value.