Talking about money with kids isn’t always easy. But in our household, it’s something we take seriously—because I know firsthand how transformational financial literacy can be, especially when it starts young.
As a financial advisor, I spend my days helping people navigate complex financial decisions. I know how important it is to have a baseline level of financial literacy. So at home, I’ve made it a personal priority to instill healthy financial habits and values in our children while they’re still growing up.
It’s not about perfection. It’s about consistency, clarity, and the understanding that money is a tool, not a taboo.
Our Family System for Teaching Financial Responsibility
Each of our kids gets $10 per week. It’s a simple system, but it packs in powerful lessons:
- $2 must go to savings
- $2 must go to charity
- $6 is theirs to spend
We have one big rule: If it’s a true need, my husband and I will buy it. But if it’s a want, it comes out of their allowance.
This helps our kids understand the difference between needs and wants—and gives them ownership over their financial decisions. If they want something big, they have to save up. And when the spending money runs out? It’s gone. No bailouts, no exceptions.
In an ideal world, I’d also make them earn their allowance through chores—but I’ll admit, we haven’t been quite that disciplined. Still, I’m proud of the foundation we’ve built. They’ve internalized the ideas of saving, giving, and responsible spending. Those are lifelong skills.
One tool that’s really helped us implement this system is Greenlight—a debit card and app designed for kids. It gives us visibility and control, while giving them real-world experience managing their money.
Why Financial Literacy Matters for Families
Money isn’t just about math. It’s about values, priorities, and how we live our lives. When families talk about money openly and regularly, we build trust, reduce stress, and create shared goals for the future.
For children, these conversations normalize the idea that money should be understood—not feared. And when they see parents modeling thoughtful financial behavior, they absorb more than any lecture could ever teach.
Key Financial Skills to Build as a Family
1. Budgeting Together
Turn monthly budget reviews into casual dinner conversations. Even young kids can help track grocery expenses or contribute ideas for saving on a family outing. For teens, use budgeting apps or give them a monthly “clothing” or “fun” budget to manage on their own. Celebrate wins—like saving for a big purchase or meeting a giving goal.
2. Emphasizing Saving
We talk a lot in our household about saving for things that matter—whether it’s a new toy, a donation to a cause they love, or someday, college. We also discuss our own savings goals openly with them, including the importance of emergency funds and long-term planning. It’s about showing them that saving isn’t about deprivation—it’s about creating choices.
3. Teaching Value and Tradeoffs
Every trip to Target is an opportunity to practice decision-making: “You have $6—what’s worth it to you today?” Over time, they learn that not everything is, and that’s okay. For older kids, involve them in evaluating options for phone plans or vacation costs. These mini-lessons compound into major awareness.
4. Managing Mistakes with Grace
Yes, they will blow their money on junk sometimes. That’s part of the learning curve. We try not to swoop in or shame—we let the consequences teach. The goal isn’t for them to get everything right now. It’s to develop good instincts that will serve them for life.
The Legacy We’re Really Leaving
At the end of the day, kids don’t just inherit money—they inherit money habits.
In our house, we talk about generosity, intentionality, and being good stewards of what we’ve been given. Whether we’re giving to charity, budgeting for a trip, or saving for the future, we want our financial choices to reflect our family values. That’s the legacy we hope to leave behind: not just wealth, but wisdom.
