Money Talks: How to Teach Kids the Value of Saving, Spending, and Sharing

Teaching kids about money can feel overwhelming, especially if managing finances is stressful for you. Yet, helping children understand money early is one of the most important life lessons parents can offer. From learning how to save for a goal to understanding the value of work, teaching financial skills prepares kids for a future where they can make informed, confident financial decisions.

The good news? You don’t need to be a financial expert to start the conversation.

Why Talking About Money Matters

Kids learn about money whether you talk about it or not—often by observing how you handle it. By having open, age-appropriate conversations, you set the foundation for healthy financial habits and build their confidence.

Unfortunately, money can feel like a sensitive or even taboo topic. Many of us grew up in households where money wasn’t discussed, leaving us unprepared for real-world financial responsibilities. Breaking this silence is key to preparing your kids for adulthood. Teaching financial concepts early helps kids save and spend responsibly, reduces money anxiety, and creates a stronger family culture of financial wellness.

Age-Appropriate Ways to Talk About Money

The way you approach money conversations should evolve as your child grows. Here are strategies for every stage of their development:

Younger Kids (Ages 4–8)

• Introduce Needs vs. Wants: Use everyday examples, such as choosing between a toy and a snack, to explain what’s necessary versus what’s nice to have.
• Use Play: Turn financial lessons into fun activities. Pretend to run a store or bank to teach basic money concepts.
• Start Allowance Basics: A small weekly allowance tied to chores can help kids understand the relationship between work and earning money.

Tweens (Ages 9–12)

• Teach Saving Goals: Help them save for something they want, like a toy or game, and track progress together.
• Budget Basics: Encourage kids to divide their allowance into categories: spending, saving, and giving.
• Explain Where Money Comes From: Introduce the concept of working for money and discuss how family income supports household needs.

Teens (Ages 13–18)

• Build Budgeting Skills: Teach them to manage birthday money, part-time job income, or other larger sums.
• Discuss Credit and Debt: Explain how credit works, including interest rates and the importance of avoiding unnecessary debt.
• Encourage Saving for Big Goals: Whether it’s for a car, college, or a trip, show them how to plan and save for significant milestones.

Practical Tips for Starting Money Conversations

Be Honest About Your Finances

You don’t have to share every detail, but being open about your approach to budgeting or lessons you’ve learned can help kids understand that managing money is a lifelong skill. For example, if you’ve struggled with debt or saving in the past, share what you’ve learned and how it’s made you better at managing money now.

Make It Relatable

Use real-life moments to explain financial concepts. For instance, involve kids in planning a family grocery trip by setting a budget and deciding what to prioritize. Show them utility bills to explain monthly household costs or let them help compare prices during shopping trips.

Encourage Questions

Create a judgment-free zone where kids feel safe asking questions about money. Their curiosity may surprise you and lead to deeper conversations.

Fun Activities to Teach Money Skills

• Younger Kids: Use jars labeled “Save,” “Spend,” and “Give” to divide allowance or gift money. They’ll enjoy seeing their savings grow visually.
• Tweens and Teens: Apps like Greenlight and FamZoo teach kids to budget and track spending digitally. For hands-on experience, let them manage a small budget for a family event, like a movie night.
• Games: Play board games like Monopoly or The Game of Life to introduce the basics of earning, spending, and investing.

Build a Family Money Plan

Set Family Goals

Create a shared savings goal, like saving for a vacation or a big-ticket item, and involve everyone in tracking progress. Kids can contribute by saving a small portion of their allowance or helping with cost-cutting ideas.

Teach Teamwork

Show kids how financial contributions—no matter how small—add up when everyone works together. This reinforces the idea that managing money is a collective effort.

Celebrate Wins

When your family reaches a financial goal, celebrate! Whether it’s a dinner out or simply acknowledging everyone’s efforts, celebrating reinforces positive habits.

Teaching kids about money doesn’t have to be complicated. By starting with age-appropriate lessons, involving them in real-life scenarios, and creating a family culture of open communication about finances, you’re giving your children tools they’ll use for life.

Start with one small step today—a quick conversation, a fun game, or setting up jars for saving and spending. And if you’re looking for resources to support your family’s financial goals, Minnesota Power Employees Credit Union (MPECU) is here to help. Visit MPECU.com for more tools and guidance to build financial wellness for the whole family.