Money Tips to Teach Your Kids and How to Have Fun Doing It

We get it, teaching kids of any age about money isn’t the easiest of tasks. They’re young and wild, and they still think everything’s free. And if money causes stress at home, perceptive kids will pick up on it quickly. Making money-talk a part of everyday, age-appropriate conversation is a great place to start — and it’s never too late to begin.

Trying to sit them down for an hour-long lecture on income taxes probably won’t go over too well. But, if you sprinkle some financial advice into everyday activities, they’re bound to catch on to some of it.

Share a few simple money tips here and there. Play money games every once in a while. And suddenly, you’re handing out money lessons like a pro.

Money Tips for Kids

Try some of these tips to start practicing solid financial decisions at home.

1. Teach the difference between things you want and things you need. Young kids don’t understand that groceries don’t just magically show up in the fridge each week or that being an adult doesn’t come with a free car. Help your kids understand that there are certain things you need to spend money on, and that you always have to take care of those expenses first. It’s all part of smart family budgeting.

2. Let them help you with grocery shopping — and decide what goes in the cart — and what needs to stay out.Ask your kids to help write the shopping list and then find the items at the store. When they ask for items not on the list, it’s a great teaching moment! Show them how doughnuts with sprinkles don’t fit in the budget for the week. No room in the budget? No room in the cart!

3. Explain the basic principles of saving and spending. Set your kids up with one jar labeled “Savings” and one labeled “Spending,” and help them save money to learn the difference between the two. Once they get rolling, add in a third jar for “Sharing.” This can be a great way to teach them about charity and how their money can be used to help other people too, not just themselves.

4. Help them save up for an expensive item. Start off by creating a wish list with all the coolest toys or gadgets or shoes or whatever else they might want. Next, help them pick out something that will take a little while to save for. Once they finally hit their goal, they’ll have an item that they will cherish in a whole new way. Plus, they’ll be on the fast track to becoming smart savers.

5. Set up their first bank account.Once they’ve got a little bit of their own money, help them set up and manage their first bank account. The younger they can learn these skills, the better. Being there to help monitor their first few financial moves will make things less stressful for you and them.

Playful Ways to Teach Kids About Money

Breaking out some good old-fashioned board games can be a great way to teach your kids money management skills. There are also some really useful, financially focused apps out there. Here are some great options for both.

1. Monopoly. It might take a while to get through a full game, but your kids will learn a ton along the way. The world’s most popular board game revolves around investing, building wealth, and buying and selling real estate.

2. The Game of Life. The main lesson they’ll learn here is that you never know what might come next in life. Whoever can react to whatever’s thrown their way, and “retires” with the most money, ends up the winner.

3. Payday. Players start off with a paycheck and a monthly calendar and go from there, navigating their way through bills and property deals as they go. This is a great way to introduce kids to the basic concepts of budgeting.

4. FamZoo. This subscription-based, 5-star virtual family banking app gives you the chance to teach your kids exactly how a banking account works, without actually having to set one up for them (or running the risk of banking fees.) It has financial education tools designed for everyone from preschoolers to college students. Check out FamZoo.com to get all the details.

5. Savings Spree. This award-winning app teaches the impact of daily spending habits through some game-show style fun. It tests financial knowledge with real-world situations, giving users the choice to spend, invest or donate their winnings however they please.

The Family That Learns Together Saves Together

If you’re a parent who feels like you don’t know enough about money to teach your kids, that’s OK. With the help of games and apps designed for kids, you can strengthen your own money-smarts — and increase your overall financial well-being.

This article has been updated from its original posting on August 22, 2018. Alex Porter contributed to this post.