What is your strategy for teaching children about money management? What is one resource or activity you recommend for parents?

Question

Unveiling the secrets to financial wisdom for the young minds, this article harnesses the knowledge of leading experts to offer practical strategies for teaching children about money management. It strips away the complexity, presenting clear methods to integrate financial lessons into everyday life. Readers will be equipped with an arsenal of tactics, from involving youth in budget decisions to embracing tech tools for financial literacy.

Vikki Zacchilli · Answer

One of the best ways for kids to learn about money is to make it a natural part of everyday life. My personal strategy for teaching my three daughters (ages 10, 7, and 4) revolves around three key principles:
1. Involve Them in Your Own Money Management - Kids learn by example, so let them see how you make financial decisions. Talk through simple choices like comparing prices at the grocery store, planning for big purchases, or setting savings goals. This normalizes money conversations, helps them develop a strong financial foundation, and lets them feel comfortable coming to you when they need money advice.
2. Give Them Hands-On Experience - Encourage children to manage their own money in small ways. This could mean setting a spending limit before a Target trip, paying at the register themselves, calculating the total at the school book fair, or reviewing their bank statements together. These real-life experiences teach them to think critically about money and develop confidence in handling it.
3. Allow Them to Make Mistakes - It's tempting to step in and stop our kids from making unwise purchases, but those small "money mistakes" are valuable learning opportunities. If they spend all their allowance on something they regret, they'll start to understand the importance of budgeting and delayed gratification--without the high stakes of adulthood. The key is to approach these moments with curiosity rather than criticism or judgment, helping them reflect on their choices.

Cory Arsic · Answer

I believe the best way to teach kids about money is to make it a natural part of everyday life. Instead of a one-time lesson, parents can include financial discussions in daily activities. Talking about how money is earned, saved, and spent helps children understand its value in a real way. One of the most effective lessons comes from allowing kids to make small money mistakes. If they spend all their money on something impulsively and later realize they can't afford something else they really want, they learn an important lesson about decision-making. This hands-on experience helps them think more carefully about their choices in the future.
One activity I recommend is creating a "family investment fund." Each family member contributes a small amount, and together they decide how to use it. The money could go toward a family outing, a small business idea, or even a charitable donation. This activity teaches kids that money can grow when used wisely and that making smart financial decisions requires patience and planning. It also encourages teamwork and helps children understand the impact of thoughtful spending. The goal isn't just to teach them about saving but to help them build a mindset that values responsibility, long-term thinking, and generosity.

Melissa Cid · Answer

Teaching kids about money management starts with making it part of everyday life. I involve my children in grocery shopping, pointing out how we use coupons and compare prices to save money. Even young kids can grasp that choosing one brand over another can mean more money for something else they want. For older kids, I give them a small budget for things like back-to-school shopping, so they learn firsthand how to make wise spending choices.
My favorite activities are the "save, spend, give" jars. Each time my kids receive money--whether from an allowance, birthday, or chores--they divide it into three jars: one for spending, one for saving, and one for giving. It teaches them patience, the value of setting goals, and the importance of generosity. Seeing their savings grow motivates them to keep going.
For parents looking for a great resource, I recommend interactive apps like Greenlight, which lets kids manage their own money with parental oversight. It helps them understand how to budget, save, and even invest in a fun and empowering way. The key is to start young and make money management a normal, hands-on part of life.

Margot Machol Bisnow · Answer

While many successful entrepreneurs credit their parents for teaching them the value of money, many parents know they should have done more. How you teach your children about money will change over time. It's best to start early, but it's never too late!
If you start when your children are younger (5 or 6), you can teach them how to make choices based on how much the things they want cost. If your children are a little older (8-10), you can let them earn money through chores or small jobs, and teach them how to decide how much to save, how much to donate to a worthy cause, and how much to spend.
If your children are a bit older (10-14), you can teach them about investing by giving them a small amount to buy stocks and following the progress. Regardless of their age, it's beneficial to give children their own bank account and debit card when they're young, and their own credit card in high school.
It's also good for parents to be more candid about their own financial situation and about their own financial decision-making. For example, they can discuss which car they should buy and what the trade-offs are regarding the effect of different prices on their budget.

Kelley Weil · Answer

The lessons you teach your children about money, especially at an early age, are most beneficial when they are stress-free and fun. When my daughter was five, she had a small shopping cart and pushed it alongside mine at the grocery store. Having her own cart meant she had to contribute to the shopping exercise. I'd say, "We need to buy apples, so tell me which kind of apple is the better deal. If you can only spend $8 on apples, how many can you get, and of what kind?" It was sort of "The Price is Right" meets "Supermarket Sweep." It gave her an understanding of the relative value of a dollar, it gave her a job on our errand, and it gave her independence in making a decision.

Gregory Rozdeba · Answer

Generally speaking, the best way I've found to teach kids about money is through real-world practice at the grocery store. I give my kids a $10 budget and let them compare prices, calculate totals, and make choices between brands. It's amazing to watch them learn to weigh options and understand value while getting items we actually need.

Desiree Teng · Answer

A great strategy for teaching kids about money management is to make it hands-on, fun, and age-appropriate. The key is to introduce concepts like earning, saving, spending, and giving through real-life experiences.
Earn: Give kids a chance to earn money (allowance, small jobs, chores).Save: Teach them to set goals and save for something they want.Spend: Let them make their own purchase decisions to understand value.Give: Encourage charitable giving to develop generosity.
Use the "Save, Spend, Give" Jars method. Give kids three jars labeled Save, Spend, and Give and let them divide their money among them. This helps them to visualize and practice budgeting from an early age.

Adam Garcia · Answer

I've found that creating a simple earn-and-spend system where kids get tokens for chores helps them grasp basic money concepts naturally. My son earns colored tokens for different tasks - blue ones worth $1 for making his bed, red ones worth $2 for taking out the trash - and he's learned to think carefully about spending them at our weekly 'home store' where he can buy extra screen time or special treats.

Holly Andrews · Answer

I taught my son about money by giving him full control over a small budget - $10 every other week - and stepping back. He splits it between three envelopes (we've tried jars first, but he preferred envelopes "like adults have") labeled "spend", "save", and "share", and I don't interfere. The first time he blew the entire "spend" envelope on a cheap dinosaur toy that broke the next day, I said nothing. He figured it out on his own, and the next time, he saved for three weeks to get a puzzle globe instead. That decision stuck with him more than any money lecture from me ever could. Kids are not adults; they need a different approach.
We also use MoneySense (from NatWest) - it's simple, but the real value is in the conversations it sparks. One of the games asked him to "shop" for groceries on a $25 budget. He was shocked at how fast that money disappeared when he added snacks. It led to a chat about needs versus wants that felt natural, not forced.
Don't be afraid to give them the room to mess it up while the stakes are small. That's how the lessons stick.

Austin Rulfs · Answer

Parents who want to teach their children about money should consider letting them use a financial literacy app designed for their age, such as Spriggy. This app provides children with a structured way to manage their own money through a digital account, while parents stay connected through a separate login. The child gets to set savings goals, track their spending, and make basic financial decisions within a safe environment. It makes money something they can interact with, not just hear about.
When children spend, they watch their balance drop. When they save, they see their goal move closer. Seeing the outcome of each decision builds awareness without constant reminders from parents. It lays the groundwork for stronger habits before bad ones can take hold. Over time, those small choices turn into patterns, and money becomes something they understand through action, not just instruction.

Edward Piazza · Answer

I discovered that using real properties as teaching tools really connects with kids when explaining money concepts. When showing my nephew around one of our multifamily projects, I let him collect pretend rent using Monopoly money and explained how property values grow over time, which made his eyes light up with understanding. I recommend parents start with the free 'Kids Money Manager' app - it lets children track their allowance, set savings goals, and even creates simple charts showing their money growth, which my clients' kids absolutely love.

Joe Benson · Answer

As a father of five, my strategy for teaching kids about money management is to make it hands-on and real from an early age. Abstract lessons don't stick; kids need to experience money to understand its value. That means giving them opportunities to earn, spend, save, and even make mistakes in a safe environment. I treat it like a gradual layering process: starting with simple concepts like earning through chores, then introducing saving for short-term goals, and eventually showing them how to budget or give generously.
One activity I highly recommend for parents is setting up a family "bank" system. Each child gets three jars or digital categories: spend, save, and give. When they earn money, whether through chores, birthdays, or small jobs, they divide it among the three. What makes this effective is that it creates natural conversations around trade-offs, delayed gratification, and priorities. If one of my kids wants a toy, we sit down and go over how many weeks of saving it might take, or whether it's worth dipping into their savings. Those moments are far more impactful than any lecture.
For older kids, I also look at using apps like Greenlight or BusyKid, which allow for more structured digital money management while still keeping the parents involved. However, no matter the tool, the strategy is the same: make money feel real, give them ownership, and talk about it often. The goal isn't to raise perfect savers; it's to raise confident, thoughtful decision-makers who know how to use money as a tool, not just spend it.

Dr. Erica Wollerman · Answer

Teaching children financial literacy is incredibly important and often overlooked by well-meaning parents who want to protect their children from adult topics. Unfortunately, without parents providing helpful information about finances, children can grow up to relate to money anxiously, irresponsibly, or avoidantly. 
The good news is that this can be avoided! By discussing finances and money in a casual way in a family, you can help your child understand the basics of how finances and money work. Even better is if you can provide your child with an allowance in exchange for completing chores. This will help them learn about how it feels to spend or save money, particularly if you are successful at reducing your own spending on your child's wants. To develop a healthy relationship with money, it is important that parents do not buy everything their child wants as this creates some scarcity and desire. As my parents always said, it is good to want things! This can help your child build a healthy work ethic.

13 Strategies for Teaching Children about Money Management

Table of Contents

13 Strategies for Teaching Children about Money Management

Involve Kids in Money Management

Create a Family Investment Fund

Use Save, Spend, Give Jars

Teach Kids About Investing

Make Money Lessons Fun

Practice Money Management at Grocery Store

Use Save, Spend, Give Jars

Create Earn-and-Spend System

Give Kids Control Over Budget

Use Financial Literacy Apps

Teach Money Concepts with Real Properties

Set Up a Family Bank System

Discuss Finances Casually

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