Clever Ways to Raise Money-Savvy Kids

Clever Ways to Raise Money-Savvy Kids

Clever Ways to Raise Money-Savvy Kids

By: Malory Wood d/b/a The Missing Ink


In the never ending hustle and bustle of life, money tends to be the root of many issues and stresses. Therefore, it is imperative to leave an impactful legacy behind for our children. The time is NOW to begin educating them in what it means to be money-savvy and to develop an understanding of money its most basic forms.

Here’s a list of clever ways to raise money-savvy kids:


Be a Good Role Model

First and foremost, you must consistently practice financial discipline of your very own before embarking the path your children are meant to follow. No more frivolous spending on random odds and ends when shopping at your local retailers!

Children follow the “monkey see, monkey do” concept, even in terms of money. If you constantly complain that bills are not paid or are falling behind, yet purchase this summer’s hottest trends, so will your children. You are setting the example for your children, so choose your path wisely.

Expose Them to Costs and Spending

When you go to the store, begin to point out prices while interjecting the words “expensive” or “affordable”. Children will begin to connect “expensive” being associated with “unnecessary” and “affordable” with “a necessity and acceptable”.

At home, consistently enforce your children to turn off lights when they exit the room and not waste water. Correlating “use only what you need” and relating it to saving money will open their eyes to the notion that nothing in this world is free. Mindfulness is key to money-savvy!


Weekly Allowance

Ah, the value of a dollar. It is of highest importance that children become exposed to what a dollar is and just how far it goes… or doesn’t go. Develop a weekly list of chores and/or activities your children are to complete. At the end of each week, provide a reasonable amount to pay them for a job well done.

Following the allowance, create a Reward Center. Include:

  • Rewards i.e. toys of their liking with attached images for reference
  • Rank each reward with a different dollar amount, low to high


The Reward Center is meant to establish motivation to work hard for the money they earn. Additionally, it is used as a motivational technique to elicit a non-impulsive response to buying the first reward they see they can afford when they realize better rewards that cost more are available.

They will learn the value of a dollar and the discipline needed to refrain from hastily buying something NOW versus sacrificing the NOW reward for what something better LATER. And thus, the Savings Account and money discipline commences.

Open a Lemonade Stand

Undeniably, one of every adult’s favorite memories is opening a lemonade stand and selling the most unenjoyable, bitter lemonade possible; It’s a true rite of passage. However, none of us were aware how taxing (no pun intended) the labor was to receive such a small fragment of payment!

Operating a lemonade stand teaches children infinite knowledge of patience, determination, integrity, success and failure and hard work. In other words, it is a rude awakening to those who assume money grows on trees and that success comes easy.


Let Them Learn from Their Mistakes

If your child chooses to spend their money from chores or alternative labor i.e. dog walking, commanding them what to buy or not buy will not allow them to flex their money-savvy wings. Instead, allow them to make the decision for themselves.

If it is a frivolous buy on a something that breaks or becomes uninteresting the second time around, that is the time to discuss how their money could have been better spend on something more enticing or useful. Saving children from mistakes stalls their personal growth and promotes bigger issues in the future.






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