One of the joys of being a dad is watching my three boys grow, explore, and figure out the world on their own. At the same time, it comes with a big responsibility: teaching them how to manage money. As a financial advisor, I know how important it is to raise financially smart kids—but I also know it’s just as important to let them be kids. Balancing lessons about money with the freedom to play, make mistakes, and enjoy childhood is tricky, but it’s absolutely possible.
Start With Simple Lessons
Kids don’t need complex spreadsheets or investment strategies to begin learning about money. The first step is keeping things simple. A few basic concepts—like saving, spending, and giving—can lay the foundation for financial literacy. For example, I’ve started teaching my boys about dividing their allowance into three jars: one for spending, one for saving, and one for giving. It’s a tangible, hands-on way for them to see how money can serve multiple purposes.
By keeping lessons concrete and age-appropriate, kids learn without feeling pressured. A 6-year-old doesn’t need a lesson on compound interest, but they can understand the joy of saving for a toy they really want. Over time, these small, simple lessons build habits that last a lifetime.
Let Them Make Mistakes
One of the hardest things for parents is resisting the urge to step in every time our kids make a financial mistake. I’ve learned that letting them experience consequences—sometimes small, sometimes slightly bigger—teaches lessons no lecture ever could.
If a child spends all their allowance on candy and then doesn’t have enough for a small toy they wanted, that moment becomes a teaching opportunity. They start to understand priorities, delayed gratification, and planning ahead. Mistakes are part of learning, and in a safe environment, they can be some of the most valuable lessons a child receives.
Use Everyday Moments
Teaching about money doesn’t have to be a formal exercise. Everyday moments are full of opportunities to talk about finances. Grocery shopping, paying bills, or even choosing a birthday gift can become practical lessons.
When I take my boys to the store, I’ll often talk through choices like, “This snack costs $3, and that one costs $1. Which one makes sense if you only have $5 to spend?” These conversations are casual, but they teach critical thinking and decision-making skills without feeling like a lecture. The key is making money a natural part of life, not something intimidating or off-limits.
Encourage Saving and Goal-Setting
Kids can get excited about saving when there’s a goal attached. It could be a new bike, a video game, or a small family outing. The act of setting a goal, watching progress, and achieving it gives them a sense of accomplishment and shows that patience pays off.
For older kids, this can expand into saving for experiences rather than just toys—like a camp, a concert, or a special trip. They begin to understand that money isn’t just for instant gratification; it can create opportunities and memories. Teaching this early sets them up for thoughtful financial habits later in life.
Introduce the Concept of Giving
Financial literacy isn’t just about saving and spending—it’s also about giving. My boys and I talk about donating to our church, supporting a local food pantry, or helping a friend in need. Even young children can grasp the idea that money can be used to bless others.
By integrating giving into lessons about money, we teach empathy, responsibility, and perspective. It helps children see that financial success isn’t just personal—it can be shared. Learning to give early creates habits that often stick for a lifetime.
Lead by Example
One of the most powerful ways to teach kids about money is to model responsible financial behavior. Children pay attention to more than just what we say—they notice how we act. When they see their parents budgeting thoughtfully, saving consistently, and making intentional purchases, they internalize those habits.
At home, I try to talk openly with my boys about why we make certain financial choices—like why we save for a trip rather than spending impulsively. These discussions show that money decisions are intentional, value-driven, and part of everyday life.
Make It Fun
Financial lessons don’t have to be boring or stressful. Games, challenges, and rewards can make learning about money enjoyable. A simple savings race, a coin-collecting challenge, or even a family “budget game” can reinforce important concepts while keeping the process playful. When kids associate positive experiences with financial learning, they’re more likely to embrace it willingly.
Balance Education With Childhood
Ultimately, raising financially smart kids is about balance. It’s about giving them the tools to manage money without taking away the freedom, joy, and wonder of childhood. Kids need room to explore, imagine, and even make mistakes. They need time to play outside, read a book, or just be kids without constantly worrying about dollars and cents.
The best approach is gradual and intentional. Introduce lessons in small doses, let mistakes happen, celebrate achievements, and integrate giving and generosity. Over time, these experiences will grow into habits, values, and skills that last a lifetime.
Raising financially smart kids doesn’t mean turning childhood into a classroom of budgets and spreadsheets. It means teaching practical, age-appropriate lessons, modeling good habits, and letting children learn through experience. As parents, our goal is to equip them for the future while still letting them enjoy today.
When I see my boys saving for a goal, making a choice between spending and giving, or thinking through a small financial decision on their own, I know that the lessons are taking root. And at the same time, they’re still running around, laughing, and enjoying the simple joys of being kids. That balance—that combination of learning and living—is exactly what financial literacy should look like.