How to Approach Your Kids and Form Smart Money Habits

Part of parenting means that we have a responsibility to teach our kids all sorts of knowledge, skills, and habits to ensure their independence. After all, every mom and dad won’t be present forever; you want your kids to stand on their own two feet even when you aren’t there.

When it comes to financial topics and proper money management, it can often be a tougher subject to navigate. Kids may not be attuned to all the big terminologies and concept that makes one financially literate, and there are many ways to approach this kind of subject.

If you need a bit of direction on how you should help your kids form smart money habits, here’s a short guide that can help:

1) Figure Out the Lessons and Tools

Before you begin to approach them, try to think about what kind of approach you want to take on when teaching your kids the value of money first. Having a formal presentation may not work, but you can try and simplify the lessons with a bit of fun learning.

For example, there are mobile apps on the market that can assist in providing financial education to a younger audience. You can also explore and watch children’s content about money. Just explain anything your kid might not have understood the first time around.

2) Always Start with the Basics

Before you get into anything too incomprehensible, start by explaining what money is to your child. Share how it is used and what you should normally use it for. Telling them how money is usually earned is also a good starting point.

Do note that it’s advisable to give these basic lessons a little early on. Experts recommend parents to start teaching when a child turns seven years old, believing it’s the optimal age to begin and mold one’s money views and habits.

3) Put the Lesson into Practice

Although words can be helpful, your kids might not be able to absorb the information if there isn’t any practical execution. Bring them along with you when you’re using cash or a card to demonstrate how you can get something in return when paying. 

Always remind your children that it can take hard work before earning the money that they can spend, too. You can give them a couple of trials by rewarding them with cash for any household chores that they finish.

4) Be Repetitive and Patient

Forming habits don’t always happen overnight. Running some of these lessons and instilling that financial discipline can take months or years. Be prepared to be patient with your kid as they learn the ropes about money management.

Remember not to go too hard on them with your teaching approach, especially when you need to repeat some of the lessons they don’t get right away. Always explain how important it is to learn all these financial skills of smart spending and saving.


It can be quite a moment to watch your child have these moments of independence, whether it’s putting away a certain amount of money or splurging from those savings. Aside from feeling proud, take a moment to feel reassured that they are on the way to being financially capable.

Need to teach money management for kids? Kiddie Kredit is a mobile app on the App Store and Google Play that educates children about the credit system, providing rewards when chores are completed. Download now!

John D Saunders

John D. Saunders is a Web Designer and Founder at 5Four Digital, CMO at Kiddie Kredit and an Automation Expert with a decade of experience building brands online. He's worked with clients including Audi, NAACP and Apps Without Code.