How to talk to kids about money

Why it matters

Financial lessons in childhood can lay the foundation for money skills as an adult.

Introduce money concepts as soon as your child can do basic addition and subtraction.

Start young

Saving

Spending

Earning

Focus on basics

To help your child grasp this idea, you could give them a weekly allowance or pay them for specific chores or achievements.

A good place to begin is by talking about earning

Wants

Needs

Learn more about budgeting

Once your child understands where money comes from, explain where it goes: First to things we need, then to things we want.

Next, tackle spending

Ask your child what they’d buy if they had more money. Help set up a savings account or piggy bank and discuss how long they’ll need to save.

Then encourage saving

Your child asks for a toy they’ve seen. How

should you respond? That depends on their

understanding of money concepts.

Look for teachable moments

Help them with a plan to save for it

How will we pay for it?

Show them how to shop for bargains

What's the best price?

Discuss pros and cons of buying it

Want or need?

Reinforce money lessons in everyday

activities. Compare prices, resist impulse

purchases. Your child learns from your actions as well as your words.

Remember, it’s a process

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How to talk to kids about their first debit card

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How to talk to kids about their first savings account

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