36 Expert Ideas on Teaching Kids Money Saving Tips

They say children are the future. If that’s true, my wife and I may have a hard road ahead. Our son is still learning the concept of sharing and he’s developed a habit of throwing a handful of coins in the air to see them rain down.

Ok, he’s only three years old so we have some time to avoid a Soylent Green nightmare but we’ve yet to really start teaching him the concept of money.

That’s why I reached out to 36 personal finance bloggers for their advice on teaching kids money saving tips. The result was an excellent collection of ideas and rules for raising your kids to be financial superstars from how to budget and save to understanding the real value of a dollar.

Teaching Kids Money Savings Tips through Open & Honest Communication

I think the biggest thing parents can do to help their children learn about money is keep them in the loop. We have honest dialogue about so many things, why not spending too? Talking about trade offs and compromises in spending choices is much more powerful than simply saying “no”.

Stefanie O’Connell, The Broke and Beautiful Life

I call this the 30-Day Test to Curb Consumerism. I didn’t make it up but it works really well. The next time your kids want to buy something — new clothes, a new toy, etc — have them sit on the decision for 30 days.

Make a note on your calendar to revisit the purchase after the days. If they still want it then, let them go ahead and buy it. But I think a lot of the time you’ll find they’re no longer as gung-ho about making that purchase. After all, they presumably lived a perfectly normal and happy existence the last month without it.

Nick Loper, Side Hustle Nation

I’d suggest focusing on teaching skills over instilling ideas. Kids want to experience and engage with things that make sense to them. Find creative ways to leave your children with skills they can repeat and build on without you. Whether it’s opening up their first bank account with them or finding creative ways to do math homework, leave them with the confidence they need to see themselves as able.

Amanda Steinberg, Daily Worth

I think one of the best ways is to help them foster their sense of curiosity, and find out ways in which their skills can be useful. That in itself will carry them through things such as learning personal finance, researching income earning methods, and even the skills to help them succeed in work. I aim to do things like show them a bank card for example, and how I use it for purchasing things, or what bills mean, things like that. But let them explore and don’t be afraid for them to “fail”. I failed a lot as a kid, and my mom never coddled me, which I think really helped me with many of my money decisions and the skills I’ve used to earn more money

Sarah Li Cain, High Fiving Dollars

Talk to your kid about money so that it’s not a scary topic. Talk about using a credit card, how to pay it off every month, and where money comes from. As a kid, my Mom gave me $1 if I balanced her checkbook. It motivated me to do math and think about keeping a positive bank account balance.

Julia Scott, Bargain Babe

Be ready and able to answer questions when your kids have them. The more you know about banking, credit, student loans, investing, etc. the better resource you can be for them. And the more you push responsibility to them or allow them to claim responsibility, the more questions they’ll have. That is, if you give them a budget or tell them “no” to a request, they seem to quickly develop the skills to manage a budget or find a creative (free or inexpensive!) solution to a problem. They also may be more eager to hear your cost-saving ideas.

My kids (both are nearly grown now) haven’t always been ready to learn despite my efforts. But it’s been helpful to have answers and guidance for them when they are ready.

Julie Starnes Rains, Investing to Thrive

I’d say the biggest thing to teaching kids about money is finding teachable moments. With my child, I plan to give her an allowance but also give her the opportunity to do more chores to earn more money towards a toy she wants. It will teach the value of money and the habit of saving. A few birthday gifts of shares of stock will help guide the investing discussion too and help her feel involved.

Andrew Sather, eInvesting for Beginners

My best tip is to actually start young! By teaching your kids the principles of give, save, spend when they are young, they will be given the tools they need to make sure they always handle their own finances the right way as they get older.

Tracie Fobes, Penny Pinchin’ Mom

Teaching Kids Money Savings Tips through Real Experience

It’s important for parents to teach their children the value of money. I grew up understanding that nothing was free – I worked doing chores to earn allowance, so I could go buy video games. Didn’t have enough money for the game I wanted? Better work more. My parents really instilled that into me and I want to instill that same mindset into my children.

Robert Farrington, The College Investor

My best tip is to involve the kid early on with financial decisions. Small things at first, like should we buy that box of expensive cookies or go for name brand, should we buy water at the park or bring our own bottle. And show them that with the money saved the family can do XYZ together. They should have power over the money they get for their birthday, allowances and money earned for small jobs, to decide deliberately if they want to spend it, save it for a big item, donate it etc. The more power they have, the better they will manage their money in the future.

Pauline Paquin, Reach Financial Independence

Teach your child the connection between work and money. Don’t give them an allowance just for existing.

Paula Pant, Afford Anything