Did you know that teaching your kids good money habits is an important way to help your child grow into responsible adults who will make a valuable contribution to society? Every child has the potential to grow into a responsible adult who will make an excellent contribution to society. However, this potential has to be nurtured through intentional actions from parents.

Practical Ways to Teach Your Children Good Money Habits

When children form good money habits, they are more likely to grow into adults who will know how to manage their money and be able to give to charity and make the world around them a better place.  

In addition, when your kids are little, you can start talking to them about the importance of money, saving, and even investing. Read on about five practical ways to teach your children good money habits. 

Teach them the importance of saving.

When your child is little, you can introduce them to the habit of saving in a piggy bank. When they have any change or money from other family members for their birthday, they can put some of the money into the piggy bank. Then you can count the money they have in there with them, and when it becomes significant enough, you can take them to the bank and open up a savings account in their name. Only the parent can control most savings accounts until the child reaches the age of eighteen or twenty-one.     

Give them opportunities to earn money.

For young children, doing the house chores might be fun, but it becomes harder to convince them to continue doing them as they age. If you are struggling to get your teenage children to do the house chores, you can give them some money to do them. 

You can give your child more money if a house chore is complex and challenging. This way, you will ensure your child learns how to clean up after themselves, look after their home, and teach them the value of hard work and money. 

Give them the responsibility of spending money to make smarter money decisions.

Parents can help their children form responsible spending habits by giving them a weekly allowance. For example, you can give your teen thirty dollars for the week, and they will use that money to budget for everything they need. So whether it is a new deodorant, some knickers, or even snacks, your kids can learn to budget their money well and buy everything they need. 

Giving your child an allowance will help them to learn how to manage their money. When your child is responsible for making decisions about their money, they may make mistakes, but they’ll learn from them. For example, if your child overspends and has very little money left for the other days, it will teach them that they need to budget better next time.

Teach your children that their money can grow.

You can teach your kids about investing right from a young age. Whether through a savings account generating interest or an investing app for kids, they can learn much about how to grow their money. 

With an educational app about investing, kids can learn through fun activities about the basics of investing money. 

In addition, when you set up a savings or custodial investment account for your child, you can show them how compound interest works. For example, you can explain to them how the interest associated with a bank account can increase exponentially – how money invested can generate interest and how that interest can generate even more interest. 

When your kids are little, you can start talking to them about the importance of money. Here are ways to teach your children good money habits.

Needs vs. Wants

It is not everything your child wants that they must have. That’s why it is essential to teach your child the difference between needs and wants and make them understand that needs are crucial things they cannot live without. 

Before you teach your kids about needs versus wants, you should understand it.  


  • A need is something important for living and an essential function. 
  • A want is something that can further improve your quality of life.  

Now you can teach your kids that food, clothing, and a place to live are needs, and everything else is a want. So whether it is cable, TV subscriptions, or the latest pair of sneakers, they can be classed as a want when your kids understand that they can manage their allowance accordingly and prioritize their needs ahead of their wants. 

Practical Ways to Teach Your Children Good Money Habits

In closing, you can help teach your children good money habits by being intentional with how you give them money. For example, giving them a weekly allowance will help them learn how to budget for the week. In addition, you can teach your children to save money and invest and learn alongside them by getting involved. Lastly, you can take the time to share everything you have learned about money and get them involved in saving and investing for their future. 

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