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As a parent, you want to give your child the tools they need to succeed — especially when it comes to making smart financial decisions. But knowing you should teach your kids about money is different than knowing how to teach kids about money. How early should you start? Should you let them handle their own money? What aspects should you focus on first?
Whether your little one is just starting to grasp the concept of money or your pre-teen is ready to open their first checking account, every stage offers a chance to learn together. Here's a side-by-side look at key financial lessons from the perspectives of the parent and child, with practical tips for each step along the way.
Education Starts With Conversation
PARENTS:
Your kids are watching. Even before they can add or subtract, children notice how you talk about money and respond to spending decisions. Start by making money part of everyday conversations — at the grocery store, during allowance discussions, or when planning a family outing. You don’t have to have all the answers. The important part is having the conversations. That’s how questions pop up and teachable moments happen naturally.
KIDS:
“I wanted that toy, but Mom said I didn’t have enough money to buy it yet.” Little moments can be big learning opportunities. When kids start to understand that money is exchanged for things they want, they’re old enough to understand that waiting is part of the process. Whether it’s in a jar or a Minor Savings Account, watching their money grow is a great way to build excitement about good financial habits.
Help Them Build Healthy Habits
PARENTS:
Want to teach your kids about money? Give them some. It doesn’t have to be much — just enough to let them practice. A simple three-jar system (save, spend, and share) can help kids learn discipline and delayed gratification — essential skills for financial success. Use practical examples to introduce the idea of short- and long-term goals: saving for a small toy now, or something bigger later.
Parenting Pro Tip: Remember generosity! Teaching your children to give, even just a little, is an excellent way to cultivate gratitude and empathy.
KIDS:
Buying that first snow cone with their own money. Dropping their own money into the Salvation Army bucket. Saving for the new video game they really want. These moments are milestones. They show kids what it feels like to make good decisions with their money and that it can be a tool for fun, independence, and kindness.
Give Them More Responsibility
PARENTS:
As kids become pre-teens and move on into their teen years, money lessons should mature right along with them. This is the perfect time to consider opening a student checking account. It’s also a great time to introduce budgeting — maybe for back-to-school shopping, gas money, or a class trip. The earlier they can see where their money is going — and feel the real-world impact of their financial decisions — the more prepared they’ll be when it’s time to manage it on their own.
KIDS:
Putting their first debit card in their wallet. Logging into Digital Banking to check their balance. Budgeting for concert tickets or saving up for a car. These steps feel grown-up — because they are. Doing them with the support of a parent builds confidence, rather than stress.
Make the Moves They Don’t See
PARENTS:
While your children will be active participants in many of the money lessons you teach them, some of your most impactful financial decisions will take place behind the scenes. Open a Coverdell Education Savings Account or a 529 plan to save for education. Purchase life insurance to protect your family’s future. Add beneficiaries to accounts or setting up automatic savings to support long-term goals. Your kids probably won’t notice these steps right away, but you’ll know that you’re setting the foundation for your child’s security. And that’s a financial decision that benefits you both.
Choose Progress Over Perfection
You don’t need to be a financial expert to raise one. Consistency, honesty, and a willingness to walk alongside your child as they learn are the most important things you bring to the table. From their first piggy bank to their first paycheck, every step is a chance to learn. And every conversation — whether it’s about budgeting, generosity, or planning ahead — lays the foundation that will help your child soar financially!
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
