What To Teach Kids About Money: An Expert Weighs In (2026)
Saving money on what teach kids about does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.
Key Takeaways
- Share with your friends!FacebookPinterestMessengerWhatsAppEmailShareFlipboardRedditSMSX I retired in 2021 at age 42 from my career in Financ...
- At the time I had a 4-year-old and two 2-year-old twins.
- (I still have them, but now they are older).
I retired in 2021 at age 42 from my career in Financial Services. At the time I had a 4-year-old and two 2-year-old twins. (I still have them, but now they are older).
I put a lot of thought into what do I need to teach my kids about money.
It’s especially top of mind because they won’t grow up seeing their parents work. Our work had already been done to grow our finances. They see the rewards, but not the sacrifice.
One of the reasons we bought ChaChingQueen and started ClothDiaperBasics was so they could see us working on something.
The below captures my thoughts and recommendations on what and how to teach kids about money.
At the end of the day, all I want is to try to be a good dad.
Our son shoveling snow to raise funds for his future car.Table of Contents
- At what age should parents start talking to kids about money?
- Step 1: Build A Foundation Early
- Step 2: Associate Math With Money
- Step 3: Add To The Foundation
- What Is A Good Age For A Child’s First Credit Card?
- Is it a good idea to pay kids for chores or good grades?
- Should parents make kids work for the things they want?
- Is it ever too late to teach a child to be financially responsible or grateful?
- When Should Kids Get their first savings account?
- How can you set up A Child’s first bank account?
- Why is Opening a savings account key for kids?
- How are savings accounts different from 529s?
- What are some strategies kids can use to build up their savings?
- Next Up From ChaChingQueen
At what age should parents start talking to kids about money?
It’s never too early for parents to start talking to their kids about money. Nearly everyone either spends money, makes money, or invests money every single day. Money is such a critical part of all of our lives.
Step 1: Build A Foundation Early
It’s so key to build a foundation with kids. As a father of 3 kids aged 4 and under, the way I’ve introduced the conversation has been around “value” and “trade-offs”.
Even our two 2-year-olds understand the idea of trade-offs. Focusing on trade-offs also allows the child to gain confidence in their decision-making abilities.
Money is just something that allows transactions, but ultimately all that matters is what is the value of something to you and what trade-offs you want to make to get and give up what you value.
We’ve turned our best tips into quick-read books, and we’re publishing new ones every week. See the full collection here: amazon.com/author/chachingqueen.
Step 2: Associate Math With Money
Adults all do something with finance every single day, but the school system does a really poor job of teaching finance.
The simplest math is the same math we use in finance. It’s all just addition, subtraction, multiplication, division, and percentages.
Connecting the dots between these math functions and money is the perfect financial goal. The way we do this is we talk about it with our kids. We actively connect the dots.
The school system does a horrible job of this. Parents need to supplement.
The only reason finance seems difficult to adults, is because we don’t associate that it’s the same math we learn as kids, just with different words.
How I Teach Kids About Money By Getting Rid Of Their Stuff
Step 3: Add To The Foundation
For a child that is 10-14 connect positive and negative numbers with the concepts of assets, liabilities, and not spending more than you have.
Don’t overcomplicate these ideas, but help the child understand the idea of a negative number is spending more than you have.
We’re all so desensitized to credit cards and debt that we don’t realize what a problem it is to spend more than we make or borrow more than we need to.
Debt is acceptable because we don’t realize the math that shows us it’s a problem.
What about high schoolers? This is where it gets fun. Budgeting and basic terms should be a requirement.
More advanced/older high schoolers should understand the time value of money basics, what is a mortgage, how a credit card works, very high-level tax basics, and other similar basics that will impact their lives daily for the next 80 years.
It’s doubtful they will dissect a frog as an adult, but they will surely touch money every single day.
What Is A Good Age For A Child’s First Credit Card?
I’m comfortable with kids having debit cards and credit cards if they are used as a tool to teach assets and liabilities and tradeoffs. I love the idea of using them as a tool to teach restraint and self-control.
This requires a lot of engagement and coaching from parents. If a parent sees their role as oversight, then they are looking at it wrong. The goal is to t
Final Thoughts
Before you check out, double-check what teach kids about against current offers and any coupons you can stack. Small habits like this add up to real savings over a year.
Originally published at chachingqueen.com.
Greg Wilson, CFA
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