4 Practical Ways To Teach Kids About Money
October 8, 2025
Talking to your kids about money can feel intimidating—especially if you’re still learning to manage your own finances. The good news? You don’t need to be an expert. What matters most is modeling healthy financial habits and keeping the conversation going as your children grow.
Here are four simple ways to become a money mentor for your kids and help them build a solid foundation for the future.
1. Be the example they follow
Children absorb what they see every day, so your behavior around money speaks louder than any lecture. Show them how you budget, make thoughtful spending choices, and avoid relying too heavily on debt. Even small moments—like explaining the difference between “wants” and “needs” at the grocery store—can be powerful lessons.
You might also include your kids in small parts of the family budget so they can see how expenses add up and what trade-offs are sometimes necessary. These experiences help make financial concepts real and relatable.
2. Keep money conversations natural and ongoing
Rather than setting up formal “money talks,” weave financial discussions into everyday life. Use real situations to show how money decisions work in practice—for instance, explaining how saving helped you afford a family trip, or how paying bills on time helps your credit score.
The more often you talk about money in a matter-of-fact way, the more comfortable your children will become asking questions and thinking critically about financial choices.
3. Start saving for their education early
College or trade school may seem far off, but it arrives sooner than you think—and the costs can be steep. Consider setting up a 529 savings plan to help prepare for those expenses. Even small, consistent contributions can make a difference over time, especially if they’re automated.
You could also invite grandparents or relatives to contribute to the plan for birthdays or holidays, or match a portion of your child’s own savings once they start working. Each contribution helps reinforce the value of planning ahead.
4. Don’t sacrifice your own financial health
It’s natural to put your kids first, but your financial security matters, too. Think of it like putting on your oxygen mask before helping others—you’ll be in a better position to support your family if your own foundation is strong.
Make sure you’re staying on track with your retirement and emergency savings before diverting too much toward your child’s expenses. After all, they can take out student loans if needed—but there’s no such thing as a retirement loan.
By practicing transparency, consistency, and balance, you can help your children develop the confidence and understanding they need to make smart financial choices. And along the way, you might just strengthen your own money habits, too.
Sources:
https://www.fidelity.com/learning-center/smart-money/parenting-tips
Disclosure:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.