3 Ways to Teach Your Child About Money

Check out these 3 fun ways to teach your kids personal finance!

 I still remember walking into the bank with my dad and little brother in tow. I was finally going get my very own bank account! Without understanding what I was doing, I handed over my $5 and received a brand new, shiny debit card.

Even as a child, I was always been a ‘spender’. When my brother would receive money for a gift he would hoard it away and save it. When I would receive money, I would immediately run out and spend it on candy or a trinket I didn’t need. 
Check out My Personal Debt Story to learn about how I ended up $40,000 in debt.
Learning personal finance at a young age could have made it easier to manage my finances as an adult. While learning how to budget as an adult isn’t hard, I missed out on the opportunity to build good money habits early in life. As we all know, it is much harder to change a bad habit then it is to have good habits from the very beginning.
 
Did you know that many experts recommend that you begin teaching children about money as soon as they turn 3 years of age? If you want to teach your child how to be a ‘saver’ it never hurts to start early.
Check out these 3 fun ways to teach your child personal finance!
 

3 Fun Ways to Teach Your Children About Personal Finance

Here are 3 ways to help you teach your children about money:

 

1. Allowance

An allowance teaches children to be responsible with their money and that they need to work hard to earn it. Giving your child an allowance is a very simple way to teach them about money management.

First, you need to decide if when you will give out their allowance: this could be weekly or even monthly. The timing of the allowance doesn’t matter too much.

How do you know how much money forms a fair allowance? The general rule of thumb is $1 per year of age on a weekly basis. So a 3-year-old will earn $3 per week and a 12-year-old would earn $12 per week. Of course, you can adjust this amount up or down depending on what you feel is reasonable.

Check out the remainder of this blog post over at What Matters To Mommy!
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15 Replies to “3 Ways to Teach Your Child About Money”

  1. I really wish someone had taught me how to properly use a credit card before I went to college. Now I have a bunch of student loans, a car loan, and credit card debt that I’m working to get rid of.

    1. Thanks for commenting, Chloe. I 100% agree. For some reason, my bank gave me a credit card at 16. SIXTEEN! I could barely take care of myself, let alone be responsible for a credit card.

  2. Saving money at an early age is so very important. We started each of our kids at the age of 3. Most people think we are crazy.

    1. I definitely don’t think you are crazy! They often don’t teach kids about personal finance in school so it is necessary to teach it at home. Plus, when kids are younger it can be a lot of fun to come up with creative ways to teach them!

  3. I can be pretty awful when it comes to spending my money too – lucky I married a man who is really good with money and keeps me in line! These are great tips, and I’m definitely going to start teaching our son from a young age (maybe not yet, he’s still only 6 months old!)

  4. I think saving money at an early age is very important I agree with you never hurts to start early. Thanks for this article!!!

    1. I absolutely agree! Glad you enjoyed the article!

  5. I remember how I saved money when I was little. Great post 🙂

  6. I have always talked to my kids about the value of their money. We love to make little save jars for different things. We try to do one for travel every year.

    1. Such a good idea! It never hurts to start teaching the value of money early! It’s probably a lot of fun for the kids to save up and watch their money jar fill.

  7. I like the thought of 3 different kind of allowances! If it’s all unconditional, I think one can run into problems! I’m not the best at managing money but I really want to instill good habits with my kids!

    1. I am also not the best at managing money! I am hoping when I have children we can continue to learn about money management together.

  8. Thank you for sharing this wonderfull post.. I bookmarked your website… Keep updating

    1. So glad you enjoyed. Thanks for stopping by. 🙂

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