March 06, 2019 | Posted in:

How to Raise a Financially Savvy Child

If you have children (or grandchildren), you have a great opportunity to give them a jump-start on becoming financially responsible adults. Teaching them about money and finances is easiest when you start early, but it’s never too late to impart your wisdom.

Here are some age-appropriate ideas to help develop a financially savvy young adult.


Start by using bills and coins to teach them the worth of each. Explain that a quarter is worth more than a dime and a dollar is worth more than a quarter. Put price tags on items at home (you could use a penny or quarter sticker to show the price), give them a purse or wallet with coins inside and let them play store. Also, give them a piggy bank to start saving coins and small bills.

Grade school kids

Consider starting an allowance. Teach your children how to read price tags and do comparison shopping. Open a savings account to replace the piggy bank and explain interest and the importance of regular saving. Include them in family discussions about major purchases, vacations, etc.

Middle school students

Start connecting work with their earning money, say babysitting, mowing lawns or walking dogs. Open a checking account in your child’s name so they can access some of their earnings while they save most of it for larger purchases later on (a car?) Now is also a good time to introduce the importance of donating to charity.

High schoolers

Explain the job application and interview process and advise them on getting a part-time job to build work experience. Give them direct expense responsibility for things like gas and going out with friends. Introduce investing by explaining stocks, mutual funds, CDs and IRAs. If college is the goal after high school, include them in those financial discussions.


This is the time to focus on borrowing and its future implications. Explain how credit cards can be a companion to a budget, but warn of mismanagement and not paying the bill in full each month. Discuss the importance of their credit score and how it affects future plans like buying a house.




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