How to Teach Your Kids About Money

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Wondering how to teach your kids about money?

Understanding and taking charge of money could be one of the lifelong skills you have acquired and definitely want your children to learn and enjoy the privileges that come with it as well.

The process of making them understand is a slow and gradual one and may involve some highs and lows.

A loving parent like you should however be consistent with the money lessons regardless of the circumstances and in so doing, take advantage of every financial position you are in as a learning point to the little ones; explain to them why you did what you did and how beneficial it is to all of you as a family.

Each them the value of each buck and watch them grow into responsible citizens.

Just like any other parenting skill, financial literacy must be introduced to children as early as possible and to make your lessons sink in; continue preaching the financial literacy gospel even as they grow into young adults.

Below are a number of ideal ways you can use in teaching your children about money beginning with the youngest age group to the young adults


How to teach Kindergarten level kids about money

1. Begin with the basics

Before you introduce the concept of money to your little bunny, keep in mind that you are dealing with a child or rather ‘a just developing mind’. Similar to building, a strong foundation is a must if you really want your building to stand for ages.

You will therefore have to be quite slow and patient and in doing so; repeat some things over and over again until what you really want them to master sinks in their minds.


Like any other teacher or professor does, you will have to start with introducing the basics like: – the importance of money, differentiating between the different values of money plus differentiating notes from coins, how money is earned, the best ways to use money, how to purchase items from the store and so on.

You can as well teach them that every time you leave for work or lock yourself in the study; you are busy making money that will be used to take care of things in the house and also buy them all the good things they want or need.

That way, they will respect your efforts and will be happy; knowing that at the end of the day, they get whatever they get because daddy toiled for it.


2. Use the Three Jar Method

This method involves using 3 clear jars and is so exciting to the little ones since they are able to see how their money builds up each time they drop a cent and this definitely encourages them to drop in a little more.

Each jar will serve a different purpose and therefore should have a unique label such as; – Saving jar, spending jar and sharing jar.

a) The saving jar: one of the key skills in handling money is saving and as a parent, your child may have at some point pestered you on purchasing a particular item; usually overly expensive like a bicycle, robot toy or any other thing and you just did not want to be smooth on them that particular time.

Well, instead of telling them you will not be buying them the item; this jar will be a polite or rather playful “no”.

You will instead have to encourage them to drop a little more coins in the saving jar so that they obtain enough to buy what they exactly want.

However, do not forget to make it fun, be an example to them by dropping in some coins as well. The saving jar is a perfect teacher of delayed gratification!


b) The spending jar: Money put in this jar should be for discretionary spending. It is normal for a child to want ice cream, candy, balloons, visit amusement parks and so on but the question is; will you be buying them everything forever?

The spending jar will teach your child the sense of independence and they will not have to run to daddy all the time.


c) The sharing jar: The money put in jar no.3 should be given out as charity to those in need in presence of its manager; the little one.

You can as well make this colorful by giving away the money on big festivities like Christmas or taking them to play and interact with kids in orphanages and make them experience what other kids go through.

By doing this, you not only encourage and teach your child to be a giver, but you as well create in them a sense of social responsibility.


How to teach Middle School Going Kids and Teenagers About Money

1. Introduce Piggy Banks

Middle school going kids are quite grown and will understand if you explained to them the concept of saving money in a piggy.

Take them with you to the bank so that they get to know where exactly their money is going to be kept and explain to them the importance of having money saved in a bank.


2. Create learning Experiences for Your Kids

Always engage your kids when it comes to shopping, let them take part in writing shopping lists; giving priority to the most important things you need and crossing out some irrelevant items on the list.



This in a way will help your child realize that they are not supposed to get all that they need and it will save you from embarrassing arguments with your kids while in the malls or supermarkets since you will have already painted a picture of what is to be bought and what is not to be bought.


3. Give them commissions instead of allowances

Do not make your children get used to being given money without earning it, instead encourage them to do house chores like cleaning, gardening and so on and pay them after they complete their duty.

This way, you are not only teaching them that money is earned from working but also instilling in them a sense of discipline when it comes to home management.

You can as well engage them as office assistants and reward them on an hourly or daily basis.


4. Encourage Auto-prenuership Skills.

Teach your kids simple ways of earning money like making simple jewelry, baking tasty scorns or even cupcakes, making lemonades, slashing people’s compounds, painting mail boxes and so on.

By doing so your children will learn the basics of starting up businesses and will learn to take risks, earn profits and also deal with losses.

You can as well show them some support by buying some of their items, recommending your colleagues, helping them print business cards and in many other ways so that they get to feel that what they are doing is not a waste of effort but instead important to the society. lessons to teach your children

  • Make known to your kids that there is no limit on how much you can earn in a given period of time but rather that the choice is for them to make on their own. Engage them in most of the money-earning activities you are involved in and let them understand that you do not entirely have to depend on only one source of income. You can as well encourage them to apply for part time jobs as they study so that they do not entirely dwell on waiting to be employed after obtaining a degree.


  • Be specific with your children. Teach them that money only solves money related problems and it is not the money to buy them friends, spouses, votes and so on; your children must learn never to have emotional attachments with money.


  • Show your children that in most cases they will be rewarded basing on their result and not necessarily effort. Years ago, most people were paid according to how much time and energy they offered at their work places; those that carried the heavier loads and those that worked overtime received relatively higher pays compared to the rest. Nonetheless, those seasons have come to pass. The world we live in today encourages critical thinking and depending on how much time you are willing to actively engage your brain the more your chances of you earning more. Teach your kids how to participate in online jobs like writing, web designing and so on; you never know you may be having a another brilliant Meta founder in your premises and your letting them sleep on their dream  Just awaken the talent!!



  • The more people you help, the more money you get as a thank you from the market encourage creativity. It often these small details that we ignore that actually carry the gist; parents these days are adopting the sense of not letting their children socialize all in the names of bad company. Instead of restricting them; encourage them to make friends of substance, those that will engage them in day to day activities.


  • Take them to see where you work from and do not make your children feel entitled to your money. Just because you did not get everything as a child, most parents tend to want their children to have it all come all smooth, forgetting that they had experiences they maneuvered were the building blocks of their success today. Drop the spoon feeding session already, take that kid to your office; let them explore the kind of environment you work in, let them learn about life outside home setting.



  • Encourage your children to do what they like. If your child is a kind who loves drama, fashion and staff like that, you definitely are not to force them go to medical school because of your mentality that everyone in your family is a doctor. Things do not work that way, encourage your children in the fields they are passionate about. There is nothing as beautiful as earning from doing what you love most!



  • Encourage your children to always pay in cash and discourage them from using credit and debit cards. By doing this, you are in a way dislodging your children from having to swim in credits later in life.



  • Teach your children how to be humble. You definitely do not want to be a parent of an arrogant rich man someday, your children must be taught right from the start how to respect each and every one regardless of their financial or educational status. Instill in them the discipline of always offering a helping hand instead of criticizing.


  • Teach them how to respect each and everyone in the society; be it a cleaner, gardener, beggar or whoever. By instilling in them the element of respect; you create in them an indescribable sense of humor. Your children will thus be a more of a fortune in the communities where they will happen to be in future.



  • Teach your children the aspect of gratitude; for the grateful wealthy man will always have a sense of humor in their heart. People love working in societies where they are appreciated, no one can ever want to work with a Grambling human being. You do not want to groom a selfish inconsiderate wealthy man or woman.



  • We have a zeneth of poor people on social media flashing money around and claiming to be rich and yet it is the latter. Teach your children how to build their wealth silently without having to rub it in other people’s faces; it is better to be wealthy and anonymous than being famous and poor.



  • For the big kids involved in auto-prenuership; teach them the basic skills in business management, that is; customer care, how to cope with profits and deal with losses and so much more. By doing so, you not only equip them with managerial skills, but also open their network. You never know one of your kid’s customers will open more financial doors for them.


Conclusion: How to Teach Your Kids About Money

Most parents tend not to talk about the concept of money to their children because they actually know nothing about it and some are simply not comfortable with the topic themselves.

As a parent; equip yourself with the necessary skills and try as much as you can to clear your financial reputation so that you can easily explain the money thing to your kids.

According to child phycology, kids learn quicker but mimicking people closest to them.

You ought to acknowledge this as a parent and set the best financial example for your little munchkins.


Teach them both how and why money is earned, when or when not to spend your fortune and on top of that, warn them about the dangers of using goods on credit and instill in them a discipline of majorly paying with cash.

Do not leave your children to entirely depend on what they learn in school, you have all it takes as a parent to financially groom them into billionaires.

Schools will not teach your child how to build a satellite neither will they teach them how to earn from multiple income sources; take the lead in their lives, make them grow into who you wish them to be or even greater than you can imagine, encourage them, motivate them.

Before they mention Mark Zuckerberg as their role model; let your name come first!

I hope you found this blog post on how to teach your kids about money helpful.

Now I would like to hear from you.

Are there any tips you are using to teach your kids about money that included in this blog post?

Let me know in the comment section below.

Also don’t forget to share this blog post with your friends and family.

I love everything about saving, investing, earning, and building net worth.

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