Raising a Smart Money Child

Posted Dec 5 2009 by Sheri Stuart in 

Here are some basic ideas we offer to help parents break the cycle of debt and raise their children to be wise about their financial lives:

1.    Start early:
Many parents make the mistake of waiting to teach their kids about money. We’ve met people who think even their teenage kids are too young to be bothered with such concerns.

That’s far too late; most experts agree that kids should start learning about money as soon as possible. Depending upon the individual child and his/her aptitude, 3 years old is not too early to begin teaching them about the value of money and using it wisely.

2.    Use an allowance
An allowance is the first, best tool for teaching your kids about money. Giving them a regular income will help train them for their working life. We believe it’s important to tie the allowance to household chores and tasks that are the child’s responsibility. This will teach them an invaluable lesson about the relationship between work and income.

3.    Help them establish a bank account
After you’ve given your child his/her allowance, make sure it is deposited in a financial institution. Teach your children that the best place for their savings is in the bank or credit union, not under the mattress. Find a local bank or credit union that will set up custodial accounts for children. Wise financial institutions know that these kinds of accounts will help them create life-long relationships with their banking customers.

For more tips and advice on teaching your kids about money, download “Raising a Money-Smart Child” seminar booklet free of charge or contact Springboard Nonprofit about our financial education services.

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About the Author

Sheri StuartSheri Stuart is a dedicated financial educator and experienced communications specialist and her public awareness initiatives of writing and submitting money management articles, consumer tips, and press releases have developed a communications program and activities that provide consumers access to quality financial education information. Learn more about Sheri.View all posts by Sheri Stuart →

  • Martha Gutierrez

    As a single mother of a two young children; I unfortunately assumed that my children are too young to understand the value of money and the responsibilities that come with it. I am eager to start having discussions with my kids in regards to earning, saving and spending money.

    I already provide my children with allowances but allowed them to save it in home piggy banks. I am very excited to see my children actively learning how to save money in their very own bank accounts; and how important it is complete their home responsibilities and save their allowances.

  • April landry

    I too established a bank account for my daughter when she was 6 years old. Today she is a Money Smart adult. We must teach our children while they are young the value of money so that when they grow up, they will be financial sound and learn the value of money.

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