As a parent, you want the best for your kids, and helping them develop good habits gives them the foundation for healthy, happy and secure lives. A great place to start is to help them develop good habits for managing money.

In honor of Children’s Day on June 13, here are six important tips for helping your children become money smart. 👇

1. Model good financial habits

The most important lesson is actually one for you, the parent: your kids will learn the most about money by watching what you do. Studies show that children learn through their observations and that by the age of seven, they have already developed basic concepts about money. Remember that your words carry tremendous weight with your kids, but your actions are even stronger.

2. Talk about money

Many parents are reluctant to discuss money matters with their children for fear of either worrying them or giving them an inflated sense of privilege. But a survey by T. Rowe Price found that parents who discuss financial topics with their kids at least once a week are significantly more likely to have children who say they are smart about money. These conversations can be simple and practical: you can explain how an ATM works or talk about buying something on sale or discuss saving money for holiday gifts.

3. Let them learn by doing

Parents who let children manage their own money are more likely to have kids who save their money and tell the truth about how it was spent. Giving kids real life money experiences brings finances out of the conceptual and puts it into practice. And making a $20 mistake while young is much better than a $20,000 mistake as an adult.

Did You Know? At 15 years old, Hillary Yip is the youngest CEO in the world. She runs an online education platform called MinorMynas.

4. Make it fun

As anyone who has ever balanced a budget knows, finances can be downright dull. Make financial learning fun so that your child can grasp the concept without getting bored.

5. Help your kids set goals

Goal setting helps kids envision why they are saving and what they are saving for, and it is an essential first step toward money confidence. Encourage your child to draw or print out a picture of something they want and then help them break down their goal into manageable bites. If they want to buy a $50 video game, for example, and they get a $10 allowance each week, help them figure out how long it will take to reach that goal.

6. Give them somewhere to save

For younger kids, this may be a piggy bank, but if they’re a little older, you may want to set them up with their own checking or savings account. That way, they can see how their savings are adding up and how much progress they’re making toward their goal.

Learning financial literacy is a journey and we’re here to help. No matter if you’re 5 or 55, we’ve got your back. Just stop by a FirstBank branch or visit efirstbank.com.


Want more great content?

Check out the rest of our Smart Cents blog for more savings tips, financial education and community stories. Visit us on Facebook, Instagram, and LinkedIn for the latest news from FirstBank.


This page may contain links to external websites. These links are displayed for your convenience. FirstBank does not manage these sites and assumes no responsibility for the content, links, privacy policy, or security policy.