Financial planners and educators have provided insights on how to impart financial intelligence to the next generation in a world where financial acumen is crucial. From encouraging giving to instruct saving to using piggy banks to encourage delayed gratification, investigate the different strategies shared by seventeen experts on teaching children about financial literacy and wealth management.
- Giving Encourages Giving Encourages Saving
- Daily Conversations Build Money Skills
- Money Talks Can Be Helped by Ebooks and Games
- Involving Kids in Family Finances
- Hands-On Budgeting teaches Value
- Salary and Money Teach Financial Concepts
- Given Money teaches Value and Hard Labor
- Budget Discussions Offer Practical Insight
- Play-Based Learning Strengthens Financial Thoughts
- Three- Jar System Instills Financial Role
- Analytical abilities develop through choice-based judgment
- Experienced Learning from Savings Match
- Recycling Improves Earning and Savings
- Budgeting Lessons During Grocery Shopping
- Greenlight Books and Apps for Finance Education
- Chickens Teach Earning, Saving, and Giving
- Piggy Banks Promote Delayed Gratification
Giving Encourages Giving Encourages Saving
My wife and I strive to teach financial education to our children by helping them understand that giving to others is the most enjoyable way to use cash.
We teach them that having a wise spending and a consistent savings are essential for giving to another. This means, you will have money to give to people. We gave our children the opportunity to help them shop for Christmas gifts for children in need. They had to have money saved in order to assist.
As a family, the joy they felt when they made purchases for others with their own money was magnificent. We believe that helping our children have activities like this with money will inevitably lead to good money supervision in their future.
Alex Morgan
Parenting Blogger, alexnjessica
Daily Conversations Build Money Skills
I have my kids interact with money to tell them about money management. When they were years five, I would ask them to pick up free shift on the street. I would assist them in counting the alter, which improved their algebra abilities. Once they added up all the shift, they could go to the corner store and buy a meal. From it, they discovered that money is required to purchase the essential goods for living.
As time passed, I would often include economic training into our everyday life. When a bank passes by, I would describe what it was and how it made income. When we passed by the Federal Reserve, I may discuss the role of the Fed and how interest rate changes affect us. I would reveal that increasing rates are known as inflation when we went buying.
So, there is no one particular instance. The difference was in the brief, normal conversations over a long period of time. Today, they are intensely conscious of how to save, invest, invest, and give their money.
Joseph Chang
Licensed Financial Plannertm, Empower
Money Talks Can Be Helped by Ebooks and Games
My parents and I had simple, fruitful conversations about money, which is one of the best money lessons I’ve learned. Then, our children and I have open conversations about money on a regular basis. We talk about money using books we read together, such as The Four Money Bears, Investor Ninja, and How to Turn$ 100 into$ 1 Million.
We teach a wide range of ideas through a variety of activities. Monopoly has been wonderful to tell about foreclosures and purchasing real estate. Another vintage that teaches about career options and student loans is The Game of Life. We have even taken our oldest to start his own bank accounts to tell him about earning attention and saving and spending all he earns.
Natasha Carrillo
Financial Educator & Podcast Host, Black and Brown Make Green
Involving Kids in Family Finances
By being involved in our mother’s finances, my kids learn about money management. When food shopping, my kids help me make a grocery list, and as we buy, they compare prices, manufacturers, and materials to help determine the best choices.
As my children began to work part-time, I counseled them to put their money toward saving and paying unexpected costs. Since they do n’t have any major expenses, I required my children to save at least 50 % of their income for the future. I use them to illustrate how spending and budgeting can help them in the future by involving them in the regular budget method for our family.
Annette Harris
Landlord, informed financing
Hands-On Budgeting teaches Value
I make a point to include opened discussions with my kids about money from an early age. I use real money and video games to demonstrate basic financial concepts in an engaging, interactive way between the ages of 4 and 6. As they grow older, I give them little concessions to help them learn how to budget, save, and spend correctly.
My daughter is now a teenager, and I have her make main buying decisions herself. Next year, when shopping for her second car, I matched the amount she had saved from her part- time job and summer work, finally had her assess options and prices to consider what she could accurately afford. I asked her questions throughout the process to help her, but I also let her use the budgeting abilities she’s come to have. She learned so much through this hands- on experience and now has a greater appreciation for the value of money.
I’m a firm believer that learning happens best by doing. By giving children age- appropriate financial responsibilities, having candid money conversations, and letting them make small mistakes early on, we prepare them to become financially literate adults. My own children have learned money management lessons that will be useful to them forever thanks to this method.
Abid Salahi
FinlyWealth Co-Founder and CEO
Salary and Money Teach Financial Concepts
The first thing that we have done with our children ( 9- and 11- year- old girls ) is to give them a monthly allowance. We have also permitted them to make their own purchases while shopping and to make them own decisions.
We give them the option to take a small loan and pay it in installments in future monthly allowances to teach them the concept of loans. We also watch startup pitch programs with them and talk about concepts like revenue, sales, and margin to illustrate how businesses can make money.
Barkan Saeed
CEO, Vizteck Solutions
Given Money teaches Value and Hard Labor
The first thing I have taught my kids about financial literacy is the value of money. They discovered that people can purchase goods and services according to their needs using money. I also taught them that people ca n’t create money, they have to earn it, and for that, they have to work very hard. Every dollar that someone makes is the compensation for the labor they put forth. So, while spending that money, children should remember that money is something that ca n’t be wasted. You are wasting your hard work if you do that.
Kids wo n’t understand the value of money unless they start earning it. It’s natural for people to value our own money while keeping our own. So, one of the important lessons in financial literacy and money management is teaching kids that they have to work hard to get every single dollar.
Do n’t develop into a typical parent. Give your child an allowance, but ask them to do house chores in return. They ought to understand that nothing is free. Once they understand how much labor it takes to earn that allowance, they will start valuing that money.
Your child will need a place to deposit money once they have received it. Thus, opening an account is wise. Encourage your child to deposit money into a savings account. As the sum grows, discuss interest and how the bank pays interest on the savings. Many banks offer children’s accounts with no-fee and minimum-balance accounts. Once your kids start maintaining the account, they’ll gradually understand the importance of saving money.
Next, begin educating them on budgeting. Lunch money, school supplies, and other little essentials can quickly deplete a young teen’s allowance. Before assisting your child with their finances, separate wants and needs. I call it the salt- and- pepper game. Add salt to the food whether it is for breakfast, lunch, or dinner is required because it tastes better. But, you may add pepper to the meal occasionally when it is absolutely necessary. When talking about your family’s finances and needs versus wants with your kids, this perspective may be reinforced.
Loretta Kilday
Debt Consolidation Care Spokesperson
Budget Discussions Offer Practical Insight
I believe the most effective way to teach children about financial literacy and money management is by modeling responsible financial behavior myself and engaging in open discussions about finances with them.
Engaging children in making budgeting decisions for family activities or purchases is one particular example of instilling financial responsibility. By explaining the thought process behind budgeting and discussing financial choices openly, parents are providing their children with practical insights and a foundation for their own financial understanding.
Vernon, Chris
Founding Partner, Vernon Litigation Group
Play-Based Learning Strengthens Financial Thoughts
I’m a big proponent of using play-based learning to teach financial literacy. Engaging with my children in imaginative role- playing and through money- themed board games, such as The Game of Life and Monopoly, gives us the opportunity to act out scenarios and see the consequences of our financial decisions. My children are taught about budgeting, the importance of budgeting, and dealing with unanticipated expenses through play.
However, it’s through giving children the opportunity to be responsible for actual money that the concepts they’re exposed to during play begin to really stick. By putting children in age-appropriate household spending decisions, children are able to learn the lessons learned through play by putting those ideas into practice.
This approach does n’t need to wait until children are older, either. Financial concepts started to emerge when we made it a habit to give them a small budget and a reason for spending it, such as the week’s snack foods, even when my children were younger. In doing so, they began to understand and appreciate the value of money. As they expand, they are becoming more financially educated, weighing costs and taking into account items that offer the best value.
Paul Carlson
Managing Partner, Velocity Law Firm
Three- Jar System Instills Financial Role
Teaching my children about financial literacy and money management has been a priority, and I’ve approached it as an integral part of their upbringing, akin to teaching manners or personal hygiene. The approach I’ve found to be most effective is incorporating financial lessons into daily activities to make learning both useful and relatable. One specific example that stands out involves the use of a three- jar system for allowance: one jar for saving, one for spending, and one for sharing or donating. This easy-to-use yet powerful tool has helped my child develop the notion of financial responsibility from a young age.
Whenever my child receives money, whether from allowances or as gifts, we divide it equally among the three jars. The spending jar is intended for the minor purchases they can make on their own. The saving jar is for more significant, long- term goals, and we discuss what these might be and how saving can help achieve them. The sharing jar serves as a reminder of the value of generosity and empathy by allowing donations to be made for charities or purchasing gifts for others.
This system has led to numerous teachable moments. For instance, we sat down and calculated how long it would take to save money from the allowance when my child wanted to buy a relatively expensive toy. This exercise in patience and delayed gratification was a valuable lesson in itself. Additionally, choosing which charity to support with the sharing jar led to discussions about various causes and the effects of giving back, strengthening the idea that money can be a tool for positive change.
Michael Dion
F9 Finance, Chief Finance Nerd,
Analytical abilities develop through choice-based judgment
I usually use their toys or favorite snack as an example. When they are deciding between two or more items that fall under the category of “wants,” I ask them to choose one over the other. This helps them develop their analytical and practical skills earlier on, teaching them that they have to make informed decisions about what they’re buying before they get it.
However, I typically let them indulge in getting both options on special occasions like birthdays or Christmas while I continue to do this exercise. This reminds them that splurging occasionally on select occasions is also valid.
Jamie Frew
CEO, Carepatron
Experienced Learning from Savings Match
Any attempts I’ve made at teaching financial literacy—we call it” Money 101″ in our home—have been and will continue to be experiential and hands- on. When my son was younger, we started our first” savings match” program where I would put away the same amount for every dollar he spent. We would encourage him to use his own funds for purchases, and he eventually learned about opportunity cost.
My child has to weigh both what he wants to buy and how much it will cost in comparison to other options, as well as his ability to save for the item. His reasoning about money has been ahead of his years. It is a good, straightforward way to start teaching financial literacy.
Zoe Miller
Tea Time Facts: A Strategic Business Leader and Market Analyst
Recycling Improves Earning and Savings
In my country, old newspapers are sold for recycling. Every month, I encouraged my kids to pick up old newspapers, bundle them, and send them to the recycler. The sales proceeds became pocket money for them. As they had a “earning” at a young age, this was a lesson in financial literacy. This earning could be spent by them in any way they liked, instilling money- management practices in them.
Ankur Bhatnagar
Professor of Economics
Budgeting Lessons During Grocery Shopping
I involve my child in our grocery shopping trips and make him aware of our budget as one way to instill financial responsibility in him. I explain to him the importance of sticking to a budget and making wise choices with our purchases. I encourage him to help me compare prices, look for deals, and prioritize items based on our needs and budget constraints when we visit the store. This not only educates him about the value of money but also reinforces the idea of making informed financial decisions.
Additionally, I discuss with my son how to budget his weekly allowance for the upcoming days at the beginning of each week. By providing him with a set amount of money to manage, he learns firsthand the concept of budgeting and prioritizing his spending. This hands-on training enables him to make informed decisions about how to allocate his allowance in accordance with various needs and wants throughout the week.
Through these practices, I aim to teach my son important lessons about financial literacy and money management that will serve him well in the future.
Phoebe Mendez
Owner, Pinay Mama
Greenlight Books and Apps for Finance Education
A combination of practical tools and educational resources has proven to be incredibly effective in teaching my children about money management and financial literacy. For hands- on learning, we use the Greenlight debit card and app. It’s fantastic because it allows my kids to work on their own chores, set savings goals, make wise purchases, and even dabble in investing while I’m watching them.
The app gives me the flexibility to set controls that align with our family’s financial teaching goals, and I love getting real- time notifications whenever they make a purchase. It provides a useful framework for discussing responsible spending and money management directly in relation to their actions.
On the educational side, we’ve enjoyed reading” How to Turn$ 100 into$ 1, 000, 000″. This book is a great read for children between the ages of 6 and 12 because it really makes sense for them as they begin to think more about money. Authors James McKenna, Jeannine Glista, and Matt Fontaine do an excellent job of breaking down financial concepts like budgeting, saving, and investing into bite- sized, kid- friendly lessons. It’s especially targeted at young entrepreneurs and aspiring millionaires, covering everything from setting financial goals to starting a business in a friendly, engaging manner.
Combining the practical financial management lessons from the Greenlight app with the educational insights from the book has been a game- changer. It’s not just about teaching my kids the value of a dollar, but also about empowering them with the tools and knowledge to responsibly grow that dollar. It’s exciting to see them apply what they’ve learned, setting their own financial goals and making smart decisions with their money.
Matt Goren
Head of Marketing, Tom’s Key Company
Chickens Teach Earning, Saving, and Giving
To give our children hands-on experience with money management, we purchased three chickens. Not only do they help care for the chickens, but they also clean and sell the eggs to neighbors.
We go over what needs to be done with the money they make every few weeks. We focus on saving, spending, and donating, and have specific percentages for each category. Our children are now well-versed in this and are aware that some of their income can be used for entertainment, but they also need to use some of it for other purposes and to assist those who are in need. Those chickens have been a great way to teach financial responsibility in our family.
Logan Mallory
Keynote Speaker, Logan Mallory Speaks
Piggy Banks Promote Delayed Gratification
When my kids were young, I started a piggy bank. I have a 2- year- old and a 5- year- old who both constantly ask for things in the store. We talk about saving money for the things we love, and we always take a picture of the item to keep for later.
Our goal is to instill a sense of delayed gratification and financial responsibility from a young age. Our kids now ask us to take pictures, and those piggy banks are expanding, as opposed to asking to buy things.
Justin Barker
The Most was founded by the Most and The Most.