Start Early. Teach Kids Good Money Habits
Teaching kids good money habits is not a one-time lesson or a single conversation. It is a series of ongoing observations, conversations, and real-life experiences that unfold over time. It’s a process parents are wise to begin early—and continue consistently.
Research supports this approach. A widely cited 2013 study from the University of Cambridge found that many adult money habits are formed by age seven. This doesn’t mean children need to understand complex financial concepts at a young age. It means the foundation—habits, attitudes, language, and comfort with money—starts forming much earlier than most people realize.
The good news is that teaching kids about money does not have to be complicated.
The reality is that it does take time, intention, and repetition.
There are no secrets, shortcuts, or silver bullets. Parents and children tend to get out of the process exactly what they put into it. When enthusiasm is present, learning is more enjoyable. When parents are aligned, results improve. And often, something unexpected happens along the way—parents begin to strengthen their own money habits, too.
Below are six practical first steps to help make the journey of teaching kids good money habits more rewarding for the entire family.
Tip 1: Invest in Reading (and Learning)
If you make money choices every day—and everyone does—it makes sense to continue learning about money throughout your life.
Consider putting yourself (and your partner, if applicable) on a personal finance reading and learning plan. This doesn’t need to be formal or overwhelming. Read articles, listen to interviews, borrow books from the library, or follow thoughtful voices online.
Learning serves two important purposes. First, it confirms ideas you already believe and practice. Second, it challenges outdated thinking and introduces new perspectives.
Spend time with respected money thinkers, past and present, such as Warren Buffett, Benjamin Franklin, and trusted personal finance educators and writers. Look for voices that inspire action, not just information.
Knowledge alone is helpful. Applied knowledge produces results. When parents grow, children benefit.
Tip 2: Put Your Money Philosophy on Paper
Every family already has a money philosophy—whether it’s written down or not. The question is whether that philosophy is intentional and clear.
Start by writing down what you believe about money. Then refine those beliefs into short, clear, repeatable statements. Catchy phrases and simple slogans work especially well because they are easy to remember and easy to share with children.
At a minimum, your family’s money philosophy should address four core areas:
Saving
Spending
Investing
Giving
These ideas don’t need to be complicated. Simple is powerful.
Examples might include:
“Save first.”
“Spend with purpose.”
“Grow money over time.”
“Give to help others.”
Once written, these ideas become a shared family language and a steady guide for everyday decisions.
Tip 3: Don’t Dumb It Down—Translate It
Children are far more capable of understanding ideas than we often give them credit for. The goal isn’t to talk down to kids—it’s to translate concepts into language they can understand.
Assume children are smart. If you can explain an idea clearly, they will grasp it at a level that matches their age and experience.
A classic personal finance principle is “pay yourself first.” It’s the same idea expressed in different ways:
“Pay yourself first.”
“Do not save what is left after spending; spend what is left after saving.”
“Saving is a great habit.”
“From every dollar, save a dime.”
“Save one out of ten—again, again, and again.”
Different words. Same message.
Another effective translation strategy is introducing new financial terms using familiar, positive language. For example, compound interest can sound intimidating, but the idea can be introduced simply:
One of the most fun reasons to save money is to watch it grow. When you save money and leave it alone, your pile can grow bigger and bigger over time. That growing is called compounding—and it’s a great thing.
You’re not teaching formulas. You’re planting understanding.
Tip 4: Repeat Yourself (Then Repeat Again)
There’s no way around it—mastery requires repetition.
Children don’t learn money skills from one conversation any more than they learn reading or sports from one lesson. The same ideas need to be revisited in different ways, at different times, and in different settings.
To stay relevant and avoid lecture fatigue, use a variety of methods, such as:
Conversations and open-ended questions
Short slogans and reminders
Storybooks and songs
Games and hands-on activities
Everyday experiences
Daily life offers countless teaching moments, including:
Grocery shopping
Trips to the bank
Yard sales or lemonade stands
Family meals
Birthdays and holidays
Each experience reinforces the same core ideas—just in a new context.
Tip 5: Show Your Family the Way
This is where intention turns into impact.
Children learn more from what adults do than from what they say. When behavior matches words, lessons stick. When it doesn’t, confusion follows.
Be mindful of how you:
Talk about money
Spend money
Save money
Respond to financial stress
Plan for the future
You don’t have to be perfect. You do need to be intentional and honest.
Lead by example. Show your family the way.
Tip 6: If You Teach Only One Thing, Teach Saving
If you are only going to teach your children one money habit, teach them to get in the habit of saving.
Saving is foundational. It supports and strengthens nearly every other money skill.
Saving helps children develop:
Discipline
Delayed gratification
Preparedness
Planning and goal setting
Saving protects against poor spending choices, creates flexibility and freedom, and positions children to invest with less risk later in life. Over time, saving builds confidence, character, and peace of mind.
Most importantly, saving helps children understand that money is not just for spending now—it is a tool for building the future.
Final Thought
Teaching kids good money habits is not about perfection. It’s about progress, consistency, and care.
Start early.
Keep it simple.
Repeat often.
Small lessons, practiced daily, can lead to lifelong results.
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For home learning use Sam X Renick's series: Money Lessons Parents Should Teach Kids
For school, afterschool, youth clubs, and community learning have educators use Sammy's Dream Big Financial Education curriculum or Sammy Rabbit's Standards Aligned Lesson Plans
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