What are the SECRETS to raising kids to be money-smart?
Start young, be consistent, & give them lots of opportunities to build experience. The more experience kids have with money while they’re young, the more comfortable & wise they will be with money as they get older. They will have an advantage at making money, saving it, & being generous with it.
Here are 3 important money tips to teach your kids…
1. Learn to spend wisely now
When kids have the chance to manage their own money, they begin to understand the trade-offs that come with spending. Rather than always stepping in, allow your child to make choices with their allowance or earnings. (If you need ideas for how to let your child earn money in the first place, try ditching the allowance and setting up a Family Economy!)
If your kids spend a lot of their money on candy, toys, or Pokemon cards, that’s okay! It is their money. Sure, it takes discipline for me to not say anything. If they are happy with their purchase, great! If they feel disappointed later, that’s okay, too. These low-cost mistakes are powerful teachers. You can guide them by asking simple questions like, “Do you want to spend your money on this now, or would you rather save for something else you may want even more in the future?” Learning to pause and think before spending is a skill that pays off for life.
2. Save $2 for every $10 you make
Did you know that if you save $2 for every $10 you make, you are saving more than most people?! And if you save that much consistently, you are setting yourself up for a very good future!
And saving doesn’t need to be overwhelming to be effective! Use jars or envelopes labeled “Save” and “Spend” to make the habit visible. You can even cut out this darling piggy bank from my lesson “Be Smart with Money: Learning How to Make Wise Choices with Money to Have a Happy Life.” For older kids, help them open up a savings account & teach them about interest that can grow them money even faster. The key lesson isn’t about the exact dollar amount—it’s about always saving something. Over time, kids learn that saving is just a normal part of receiving money, not an afterthought.
3. Use your money to do good
Teach your kids that money is powerful not only for helping buy things we need & saving for the future, but also to help other people. Help them know that they can use a portion of their money to give to people in need or to buy a gift for a sibling or to purchase a treat for a friend. Doing these kinds acts help makes other people happy & helps us to be happier as well.
How can you make teaching your kids money skills EASY & FUN?
I have exactly the resource you need to teach your kids to be wise with their money…
I teamed up with a cute financial expert @simpleindependence (who also happens to be my husband) to create this month’s issue of Teach Me How: “Be Smart with Money: Learning How to Make Wise Choices with Money to Have a Happy Life.”
After doing this lesson and these activities, your child will understand:
- How the choices they make with money will impact their life
- The power they have to make and save money on their very own!
- How they can be kind with their money
- How to save up for bigger purchases
This resource is FULL of ideas for how to teach money skills ages 4-8, ages 9-12, and ages 13+. Just remember, by keeping money lessons simple, fun, and consistent, you help your kids build habits that will serve them well for years to come!
If you’d like more resources about teaching your child about earning and spending money, you might like these resources: