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It’s Never Too Early to Teach Your Kids About Financial Capability

Raising a responsible child is every parent’s dream. Of all manifestations of responsibility, financial responsibility is one of the most important. Millennials and Post-Millennials grow up in a highly competitive landscape with skyrocketing education costs and more job insecurity than young people in previous generations. It is more essential now than ever to teach your children the importance of spending thoughtfully and paying themselves first, so that they will be in a good position to pivot when necessary and will have their own finances to lean on.

Teaching your child about financial security and responsibility will also be beneficial to you, because it holds you accountable. According to a study published by, more than one quarter of adults surveyed reported that a mother was their largest financial influence. This role may encourage you to improve your own financial literacy! Look into a timeline for at what ages kids can grasp certain concepts and organize lessons. Help them set saving goals when they are very young. Overall, teaching them financial literacy will help them lead more grateful lives and learn to distinguish between wants and needs.

One way to teach your children about financial responsibility is to make them apportion allowances according to a realistic model. If you give your child an allowance, or cash to buy something in particular, give them a wad of one dollar bills. Then have them give 40% back to you as a tax for living in your space and breathing your air. Then tell them they can put 20% in a piggy bank to save for another day. If your family gives a tithe to your place of worship or donates to a particular charity, put 5-10% in a different spot to save for them to physically donate it. They can then spend the remaining 30-35%!

There are also tons of online financial literacy games designed for all ages. Check out Bite Club, Gen I Revolution, Road Trip to Savings, or Financial Football! Happy Saving!