Teaching Kids About Money: A Financial Coach’s 6 Best Ways

teaching kids about money

I’m a Financial Coach and mother of three. πŸ‘ͺ I’m often asked how I’m teaching kids about money — specifically my own kids!

But first — why I’m so passionate about finance and investing: My husband and I also became millionaires in our 30s through basic investing (index funds + tax-advantaged accounts like 401k, Roth IRAs). πŸ“ˆπŸ’Έ We were able to start investing right out of college because we took a personal finance class together that emphasized investing. I learned the power of financial education! And I’m passing that information onto my kids.

Here are 6 WAYS our KIDS are learning about MONEY –> πŸ€‘

1. We pay our kids a MONTHLY ALLOWANCE so they can practice using money. πŸ’΅

They also have to do CHORES. The chores are not optional. 🧹

The longest study on humans (conducted by Harvard) found chores to be one of the best ways to help children become successful adults. 😊

2. Our kids make their OWN PURCHASE DECISIONS. 🧸

Learning to be a smart consumer and buy quality items comes through practice. πŸ‘πŸ½

A study found that kids who received their own pocket money knew more about interest rates and inflation than those who did not. πŸ“ˆπŸ’Έ

3. But they only get to shop ONCE A MONTH. πŸ—“οΈ

In a world of instant gratification, I think it’s a great way to practice:

– DELAYED GRATIFICATION

– CONTENTMENT with what they already have 😊

4. They’re INVESTING. πŸ“ˆπŸ’Έ

20% of their allowance is used to buy equity index funds (they can choose to invest more).

They’re learning that investing is volatile in the short run. So we also run calculations on how investing compounds exponentially over decades. πŸ“ˆ

5. Our kids are welcome to sit in on Mom and Dad’s MONTHLY MONEY MEETINGS. πŸ—“οΈ

It’s helpful for them to see the process of working through financial discussions and tasks. βœ…

They learn about budgeting and long-term financial planning. πŸ“ˆπŸ’Έ

6. How to BUDGET. πŸ’Έ

Budgeting comes up most often when discussing potential careers. We’ll pull up salary estimates and work out monthly expenses to figure out how they could live within their means.

We live in a high-cost state, so we discuss concepts like cost of living.

We create a budget using my Money Fit Tracker.

The Study I’m Relying On

I honestly don’t know if I’m doing it β€œright.”

But if nothing else, I rely on a study that found young adults who had been:

– Encouraged to SAVE

– Taught how to BUDGET

Were more:

– FUTURE-ORIENTED

– ABLE TO CONTROL SPENDING

These sound like great outcomes to me! πŸ‘πŸ½

teaching kids about money

Resources to Help Teach Kids About Money

I’m an accountant + busy mom. πŸ˜…

I empower moms with financial education. πŸ’Έ

I’ve created 2 Amazing Resources!

1- FREE MONEY CHALLENGE πŸ’Έ

Increase your financial knowledge and get your finances on track!πŸ”—

2- INVESTING 101 COURSE

Not sure how to teach your kids about investing? Take my Investing 101 Course!

This course was made BY a busy mom FOR busy moms.


Feel GREAT about what YOU’RE Doing! 😊

“There is NO WAY to be a PERFECT mother but a MILLION ways to be a GOOD one.”

Jill Churchhill

❓ How are YOUR kids learning about money? πŸ’Έ

Celebrate ALL the ways you’re teaching your kids about money (e.g. taking them grocery shopping with you). πŸ›’