INSIDE: One of the best things we can do for our children is to help them develop good money habits since they’ll be managing money their whole lives. Try these money tips for kids!

Financial literacy is an essential life skill for everyone, including our children, and it’s never too early to start.

Our children grow quickly, and it’s important to teach them basic life skills like managing money so they can start developing good habits. Then, it will be much easier for them to manage their finances in the future, including paying bills, budgeting, saving, and investing.

Here are some money tips for kids to help you turn your little one(s) into responsible and excellent money managers…

Children, especially at a very young age, often find it difficult to understand the importance of saving, budgeting, and investing to attain financial independence in the future. But, you can slowly introduce the concept in a kid-friendly and exciting way. 

Start by encouraging them to set a financial goal for themselves, such as saving up to purchase a toy they want to own. With money tips for kids like this one, you can teach them the concept of spending, saving, and budgeting, which are the basics of financial management.

A piggy bank looks cute and appealing in the eyes of our children, and they probably already know it is used to store money. But using a clear or transparent jar or coin bank helps them appreciate the value of saving even more. If they saved three dimes yesterday and put another five dimes in today, then they can see their money growing.

Money tips for kids like this one teach them that it is possible to have lots of money and buy their favorite toy as long as they keep adding or saving money into their jar. And it shows them how to appreciate the act of saving, which can turn into a habit later on.

Over time, however, it’s better to teach our children to save their money in a bank account for a few important reasons.

Introducing budgeting to your kids is important because it is one of the most basic yet essential life skills to learn. To do this, just have them earn allowance and then teach them how to budget it into two portions:

1. Savings
2. Expenses

Setting a budget and sticking to it teaches them that spending all of their money is not good, but that it is also not a good idea to deprive themselves and save all of their money. Balance is the key.

Try these family budgeting tips too!

Another great money tip for kids is how to stick to their financial goal. Whenever they want to buy something on impulse, gently remind them that a dime spent in buying other things is a dime taken away from what they are saving up for.

Teaching them how to make better decisions and assessing financial choices is one of the most fundamental tips they can learn when it comes to managing their money when they grow up. 

Teach them the concept of practicing delayed gratification and prioritization, as well. Whenever they see something and hurriedly want to buy it, help them think about whether they really need it or do they just want it now.

Teach them that there are things we call “needs” and things we call “wants.” Allow them to learn the value of prioritizing instead of making rash or impulsive decisions with their money.

And the absolute best money tip for kids is being a good example. What our children see us doing impacts how they will live their lives later on. If we are demonstrating bad money habits, then they are more likely to adopt the same behavior themselves. On the other hand, if they see that we are excellent at handling finances, they it can give them a better start in life. 

If our children often see us spending money and buying a lot of things regardless of needs and wants, they will notice it. Observing us calculating and planning our expenses and money helps them realize that it is the right thing to do.

With these money tips for kids, you can help your children learn responsibility and start them on the right foot when it comes to finances. These are skills that will carry them far in life. Please comment below with any tips you’ve tried as well!

Written by: Sophia Young

* The information provided here is not a substitute for medical advice or treatment. Please read my full disclaimer notice here. This content may contain affiliate links. Please read my full disclosure here.