How to Teach Sound Money Habits to Kids of Any Age

How to teach sound money habits to kids of any age – tips. I’ve posted a lot recently about kids and money. The more research I’ve done, the more I realize how possible it is to have positive influences on how kids handle their money very early in in their lives.


The importance of instilling good money habits in children as early as possible is the key for future financial success. Whether your child is just entering pre-school or getting ready to embark on college, conversations about how to handle money can pay big dividends.

Chicago Healers Practitioners has provided some valuable family health advice for Oakland County Moms through the years and I thought this information that they sent to me would help anyone trying to teach their children successful money habits.

Chicago Healers Practitioner Julie Murphy Casserly (CLU, ChFC, CFP) stresses the importance of instilling positive money habits in children as early as possible and offers easy conversation topics to address the issue at every age.


Yes, money patterns begin to formulate during the pre-school years. You can start talking to your child about money when they are 2 or 3 by explaining that everything costs money – from the food they eat, the clothes they wear, to the house they live in. These talks need to go beyond the necessities too. Explain that new toys, accessories or video games are things your family can live without. Introduce new toys to them a few at a time, rather than showering them with an over-abundance of playthings. This will help them get used to the fact that they don’t need a heap of toys to be happy.

By the time your child is 6 or 7 years old you can start teaching them about prioritizing their money. For example, when you are at the toy store, instead of letting them pick anything off the shelf, try giving your child five dollars and letting them choose something that fits within this price tag. For parents who buy their children anything and everything, the child will expect this treatment later on in life, giving them a sense of entitlement. Ask yourself, is this the reality I want for my child 15 years from now?

This is also the point in time to show your child that money is the result of hard work. Work out a plan with a family friend or neighbor where your child will do housework or yard work for $5-$10 cash. Then give them the power to choose how they want to spend or save their hard-earned money.

High School
At this time, it is critical to create a financial collaboration with your son or daughter. Encourage them to get a part-time job to help pay for their car insurance, their gas or portions of the monthly car payment. Children should be held accountable for sharing some of these costs with their parents. Once they get that paycheck, establish guidelines on how it should be dispersed — 1/3 goes towards that car payment, 1/3 goes towards their future college fund and 1/3 can be spent on whatever they choose.

During this age, it’s also important to highlight the importance of living a quality of life, rather than the quality of things that you own. Help your children understand that material things like a brand new car when they turn 16, are often a source of immediate happiness, but sooner or later, this happiness fades and they will be left searching for deeper self-fulfillment.

Your child is an adult now. Have an adult conversation with them about their finances and make sure they understand how credit works. Tell them about your experiences with credit card use – the good, bad and the ugly. Once kids are on their own, temptations will always arise and children in this age bracket will more than likely consider opening a credit card to fund some of these temptations. Explain how credit cards can bring a false sense of financial reality. They make us less conscious of where our money is flowing and how much we are spending. Talk about how the constant struggle to earn cash to pay off debt can take a physical and emotional toll.

About ChicagoHealers.comChicago Healers ( is the nation’s pioneer prescreened integrative health care network, offering a comprehensive understanding of each practitioner’s services, approach, and philosophy.  Our holistic health experts teach and advocate natural and empowered health and life choices through their practices, the media, educational events, and our website.  With close to 200 practitioners and over 300 treatment services, Chicago Healers has provided nearly 400 free educational events for Chicagoans and has been featured in 300+ TV news programs and print publications.  For more information, visit

How to Teach Sound Money Habits to Kids of Any Age

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