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Empowering the Next Generation: Strategies for Teaching Kids About Money | Living Life with HarassedMom

Strategies for Teaching Kids About Money

In this post, we delve into the crucial role of imparting financial wisdom to our little ones as part of my Financial Freedom for Moms series. Discover practical tips and strategies for moms to nurture their children’s financial literacy, setting them on a path toward a prosperous future. Remember, teaching kids about money isn’t just about dollars and cents—it’s about building lifelong skills and confidence that can help them make smart financial choices. 

Why Teach Kids About Money

Teaching kids about money from a young age can help them develop healthy financial habits that will benefit them throughout their lives. It can also help them understand the value of money and how to make smart financial decisions.

Tips for Teaching Kids About Money:

  1. Lead by Example: Children learn by watching their parents, so it’s essential to demonstrate good financial habits, such as budgeting, saving, and investing. We have always been pretty open with our kids about our money situation. The older two are now living on their own and they both spend very frugally, which I do believe will stand them in good stead as they start working and earning more. 
  2. Start Early: Introduce basic concepts of money, such as earning, saving, and spending, as soon as your children are old enough to understand. We didn’t do this with the older two but Jack and Emma both have their own bank accounts and can make their own decisions. We let them make the choices we wouldn’t necessarily and often they will comment that they shouldn’t have bought that thing. 
  3. Use Real-Life Examples: Use everyday situations, such as grocery shopping or paying bills, to teach kids about money. We tell the kids how much things cost and then relate it to something they want or have. The younger ones take a while to get it, so keep talking. 
  4. Encourage Saving: Teach kids the importance of saving by helping them set savings goals and offering incentives for reaching those goals. This is super important. My neighbour makes their children save 10% of their pocket money. They save it on their behalf so the kids aren’t tempted to spend it. 
  5. Talk About Money: Have open and honest conversations with your kids about money, answering their questions and explaining financial concepts in an age-appropriate way. We have a lot of conversations about money, definitely a lot more than I had growing up. 
  6. Teach Budgeting: Help kids learn how to budget by giving them a set amount of money for discretionary spending and encouraging them to plan how to use it. This is a life skill that every one should be taught. We will be incorporating it into our homeschool lessons. 
Empowering the Next Generation: Strategies for Teaching Kids About Money | Living Life with HarassedMom

Teaching Tools for Kids About Money:

  1. Allowance: Giving kids an allowance can help them learn about earning and managing money. This is the best way for kids to learn about money. 
  2. Piggy Banks: Using a piggy bank can help kids visualize their savings and learn the importance of saving for the future. Having a bank account can work the same, they can see their balance increase – this works really well for Emma. 
  3. Games and Apps: There are many games and apps available that can help teach kids about money in a fun and interactive way.
  4. Books and Resources: There are also many books and online resources available that can help kids learn about money management.

Teaching kids about money is an essential part of helping them develop into financially responsible adults. By starting early, leading by example, and using age-appropriate teaching tools, moms can help their children build a strong foundation for financial literacy.

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4 Responses

  1. Yes, yes, 1000% YES! I always say – I wish we learned more about money in school rather than useless things like geometry, lol! It’s so important as an adult and learning from a young age is SO helpful. Love this!

  2. I wish they focused a little more on these things at school. It’d definitely important for them to start young.

  3. Thanks for sharing this list of good educatioal tips for kids about finance. It’s absolutely right that parents & guardians be a good examples for thd kids. Cheers SiennyLovesDrawing

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