How to Teach Kids About Money-Without Boring Them

4 MIN. READ

 

Key takeaways:

 

• Are you teaching your kids about money? Discussing important financial topics now will set them up for success later in life.
• You can make learning about money fun with games and an allowance.
• PFCU offers great youth savings and checking accounts for your child.

Do your kids spend their allowance the moment they get it, or do they carefully plan their next big purchase?

The way your child thinks about money today can shape how they manage it tomorrow. Teaching them how to save, spend wisely, and set goals is one of the most valuable lessons you can pass on.

And the best part? When you teach kids about money, it doesn’t have to be boring. You can make it fun, and even do it together as a family.
 

Set the Right Example

For many parents, money isn’t something they openly talk about with their children. While you might not discuss your mortgage with them, your children look up to you and see you make money decisions every day.

There are plenty of opportunities to set an example:
 

• When shopping for groceries, explain how you compare prices to find the best value.
• Before buying a new electronic gadget or item of clothing, tell your child you want to wait a few days to think about this purchase. You can also involve them in researching big purchases for the family.
• As your child gets older, get them involved in planning family activities and look at prices together. 
• Make financial management visible. Tell your child you’re checking your account balance or setting up an automated payment for your car insurance.

These examples don’t have to turn into lectures about money. Show your kids that making good money decisions is a part of everyday life and that small choices add up.
 

Turn Allowance Into a Teaching Tool

Now that your children are watching you make money decisions, it’s time to let them make their own. We’re talking about allowances, and let’s start by saying you should let your child make mistakes with this money, even if it seems counterintuitive:
 

• Letting your child make their own decisions shows you trust them with money and boosts their confidence.
• Experience is the best teacher. Your child needs to run out of money (maybe more than once) before they understand the consequences of careless spending.

Letting your child work for their allowance is an important money lesson, even if it’s just a few small chores. It helps them value money more and appreciate what they can buy with it.

You should also introduce some age-appropriate budgeting concepts. For instance, after getting $5, your child could put aside $2 for small treats, another $2 toward a $20 toy they want, and $1 for charity.

The key is to make budgeting visual and hands-on, with envelopes, color-coded piggy banks or a simple tracking sheet.
 

Improve Your Kids’ Financial Literacy With Games

Don’t wait until your child is in college to start talking about credit, investing, and other important financial literacy topics. You can introduce all these concepts early on with games.

Here are some options:
 

• Help your little one become familiar with currency with this coin-counting game from ABCYA.
• f you have a young entrepreneur on your hands, show them this fun virtual lemonade stand game.
• Once they reach elementary school age, get together as a family for board game night with Monopoly or Pay Day. Check out the mobile Monopoly game for a fresh take on this classic.
• Challenge your teen with Financial Football, an exciting game that will test their knowledge of financial topics.
• The Stock Market Game is a fun introduction to investing for teens. Turn it into a family competition to see who can build the best portfolio!

For more games and resources, we recommend checking out Greenlight. It’s a debit card and financial education app you can use to send money to your kids while setting some limits on their spending. And the best part is its free for Power Financial Credit Union members. 
 

Is It Time for Your Child’s First Savings Account?

The best way to learn about managing money is through hands-on practice, which is why you should look into opening an account for your child as soon as they’re mature enough.

At Power Financial Credit Union, we offer Rocky Racoon youth savings accounts for members 12 years old and younger. It’s the perfect way to start giving your child more responsibilities, and these accounts make saving fun.

Your child needs only $5 to open an account and won’t pay any monthly fees. We’ll even give them $2 for each “A” on their report card, and they’ll earn tokens when making deposits, which they can redeem for fun prizes and gift cards.

As your child grows, you can look into our Cha-Ching! teen checking accounts to help them manage their spending. Greenlight is another great tool that allows you to automatically transfer money to your kids for chores. Plus, your child will get their own debit card that you can set a spending limit on.
 

Teach Kids About Money With PFCU

It’s never too early to start teaching your kid about making good money decisions. Remember to make it fun, choose age-appropriate resources, and let your child make mistakes.

We’re here to help with a selection of banking products for the whole family, from Greenlight to youth savings and checking accounts that will turn into student banking products once they’re ready for college.

Find a nearby branch to learn more about enrolling your child as a member or contact us online to learn more about our youth banking products.
 

FAQs About Teaching Your Kids About Money

How can you teach financial literacy to your child?

You can model good financial decisions in everyday life. You should also talk about basic concepts like budgeting or credit, and let your child manage their own money with an allowance.
 

When should your child start learning about money?

Your child can start with counting coins as early as 3 or 4. You can start talking about concepts like budgeting and saving at 6, and introduce more complex ideas like credit or investing as your child grows.
 

Should children get an allowance?

Yes, getting an allowance is an opportunity for your child to make their own money decisions. If you have your child do a few chores for their allowance, they’ll also learn the value of hard work.