6 Ways I Taught My Kids About Money
I taught my kids about money through real-life lessons that made earning, saving, and spending both fun and meaningful—because financial wisdom starts at home!
- Alyana Aguja
- 4 min read
One afternoon, when my son David was about ten, he came to me with his allowance money and asked if he should spend it on a new toy or save up for something bigger. It hit me right then—I hadn’t really taught him how to make that decision. Growing up, I didn’t get much financial guidance, and I didn’t want my kids learning money lessons the hard way like I had. So that day, I sat David down and showed him how to divide his money into “save,” “spend,” and “give” jars.
Maybe you’ve had a similar moment with your own kids or grandkids, realizing they’re at that age where money habits start forming. Those early lessons stick with them more than we realize. Today, I’ll share six ways I taught my children about handling money—practical steps that helped set them up for a strong financial future.
1. The Power of Earning
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From an early age, I instilled in my children the concept that money doesn’t come freely—it’s earned. Rather than giving them an allowance, I instituted a basic system where they could earn cash by completing age-specific chores beyond their regular tasks. This enabled them to equate effort and reward, and they soon grasped that to get something, they needed to work for it.
2. The Three-Jar System: Spend, Save, Give
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I taught my children the art of money management using three jars with captions “Spend,” “Save,” and “Give.” Whenever they received money, they split it between these jars to divide short-term desires, long-term savings, and charity. Watching their savings increase provided them with a sense of satisfaction, and selecting a charity to contribute to made giving meaningful.
3. Grocery Store Budgeting
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Rather than simply bringing my children along for grocery shopping, I made it a money lesson. I’d give them a limited budget and have them pick out foods for a meal, ensuring that they compared prices and did not exceed their limit. They gained an understanding of the value of money, the importance of putting needs before wants, and even how to look for bargains.
4. The Cost of Impulse Buying
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To instill patience and wise spending, I asked my children to wait for a while before making discretionary buys. If they wanted a toy or gadget, I would ask them to wait for a couple of days before buying. Most of the time, they would lose interest or decide that they liked saving for something better—teaching them not to spend impulsively in the future.
5. Earning Interest on Their Savings
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To demonstrate the strength of saving, I served as their own “bank” and paid them a little interest on the money they saved. Every month, I’d put a percentage in their savings jar, rewarding them for not spending it all. They were amazed at how their money “grew” over time, which strengthened their saving habits.
6. Allowing Them to Make Small Money Mistakes
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I understood that true learning is a result of experience, so I allowed my children to make small money mistakes when it mattered little. If they blew all their savings on the latest fashion item and felt sorry for it after, I did not rescue them. These experiences taught them some precious lessons about thinking ahead and spending money wisely—lessons they will live with well into adulthood.
Looking back, I’m grateful I took the time to have those money conversations with my kids. It wasn’t about turning them into financial experts overnight—it was about giving them the tools to make smart decisions and avoid the pitfalls I stumbled into when I was younger. Over the years, I’ve seen them carry those lessons into adulthood, managing their finances with confidence and care. Here are five steps you can take to teach your kids about money today:
Use a clear system for allowances: I gave David and Emily weekly allowances and had them divide it into saving, spending, and giving jars. It taught them how to balance short-term wants with long-term goals.
Involve them in budgeting: Before family outings, we’d sit down and plan what we could afford to spend on food and activities. It helped them understand real-world costs.
Let them make spending mistakes: When David once blew all his money on candy and regretted it later, I used it as a teaching moment rather than bailing him out.
Encourage earning opportunities: I had the kids take on small chores beyond their regular responsibilities—mowing lawns, raking leaves—for extra money, so they understood the connection between effort and income.
Talk openly about financial priorities: Mary and I made it a point to discuss why we skipped unnecessary purchases and saved instead. The transparency helped our kids see the bigger picture.
Start early, be consistent, and let real-life examples guide the conversation. You’ll be setting them up not just for financial stability, but for lifelong confidence in handling their money.