Teaching Children about Money

teaching kids about money

As moms, we want to instill lifelong lessons about managing money into our children’s brains. Children gain self-confidence as they learn to manage their own money.

Set an Example

Children learn the most through osmosis. They observe and mimic adults from an early age. So how you spend or save money matters from the beginning. I want my children to follow my positive example, but not my negative example. If you need to improve, like me, you can begin now. We can show restraint and buy only what we can afford and set aside savings. Or work on getting out of debt.

Start Early

When my oldest son turned two, my mom and I were shopping for his birthday present. My son reached out and started crying when he saw a Handy Manny toy. I cringed inside that the war between advertisers and parents had begun for me. Grandma got him this present for his birthday, but I’ve had to say ‘no’ many times while shopping since then.

Understanding within an Age Group

Toddlers start grasping the idea of money. My four-year-old knows he can buy candy from machines and he asks for quarters. My seven year old is learning how to make choices about money. For example, he chose to buy school lunch with his birthday money this year. My boys are able to set short-term goals.

At eleven years old, I opened a savings account and learned more about interest and how to manage a bank account. As a teenager, I earned money and saved for longer periods of time. At these ages, I also learned about charitable giving.

Since I’m no expert, see Laura Shin’s article “The 5 Most Important Money Lessons to Teach Your Kids” on the Forbes website.

Earning Money

Children usually receive money on their birthdays and other holidays. Children also need opportunities to earn money and develop their work ethic. Toddlers to teenagers can do chores. It may be picking up a few toys, vacuuming, or mowing the lawn. Remember, an allowance is not earning money since children put no effort forth for it. Employers won’t pay an employee for doing nothing.

Children can earn money or privileges for doing their chores. Most children need a visual reminder of a chore chart and also they can see their own progress. You can show how much they’ve earned on the chart, or put money in a piggy bank. Sometimes funds are low so children can wait to have the money or earn privileges. Earning privileges still provides an opportunity for children to gain a work ethic.

Children can also have odd jobs outside the home. Older teenagers can sometimes get regular part-time jobs to earn money.


They can save this money for a short-term or long-term goal, depending on their age. This teaches children patience and instills confidence in their own financial ability. Savings accounts also provide your child the opportunity to see how their money can earn interest.

So let’s do some simple things to teach our children about money. We begin with ourselves and then teach our children. We do this so they become responsible adults, and so they will move out on their own one day. I want to have my house to myself when my husband and I retire!


Links for More Info



Suze Orman



Eileen Davis (Guest Blogger)

Eileen Davis (Guest Blogger)

I'm a crazy redhead. I have three hyperactive boys and a wonderful husband. I earned my BA in English Language from BYU. I grew up in Southeastern Utah in the middle of nowhere. I now reside by a big lake in Utah.
Eileen Davis (Guest Blogger)

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