Raising Money-Smart Kids - Part One

If you’re a parent, like me, you know our job is to prepare our kids to “launch” — to step into adult life ready for the challenges and opportunities ahead. Since finances play such a major role in building a stable future, one of the most important lessons we can give our children is how to manage money wisely.

With the start of a new school year, there’s no better time to begin the conversation. This is the first in a series of posts designed to help you prepare your child to become financially savvy and confident. We’ll begin with the foundation:

Part 1: Saving and Spending

• Differentiate wants vs. needs. Everyday moments are great teaching opportunities. Try pointing out examples at the grocery store or while shopping for clothes — these simple lessons stick.
• Allowance or commission. Consider giving a weekly allowance, or better yet, a “commission” tied to helping out around the house. This teaches kids the connection between work and earning.
• Buckets for money. A simple 3-jar system (Save, Spend, & Give) works well for younger kids. For teens, transitioning to a checking and savings account introduces real-world money management.
• Reflect and review. Take a few minutes each week or month to talk about how they used their money. Reflection builds awareness and encourages better decision-making over time.

In the next post of this series, we’ll look at teaching kids the value of Investing for the Future — another important step in raising financially savvy adults.